Dollar Drifts Lower Against Major Counterparts After Weak Economic Data

The U.S. dollar traded weak on Tuesday, weighed down by data showing a slowdown in the nation's manufacturing activity, and on the Euro's strength after data showed a notable expansion in Eurozone manufacturing and services sector activity.

The S&P Global US Composite PMI declined to 50.9 in April from 52.1 in the previous month, signaling only a slight expansion in the country's private sector, which was the softest since December, a preliminary estimate showed.

The S&P Global Flash US Manufacturing PMI fell to a four-month low of 49.9 in April 2024, from 52.0 in March. The reading was expected to come in at 52.0. The S&P Global US Services PMI dropped to a five-month low of 50.9 in April.

A report released by the Commerce Department showed new home sales spiked by 8.8 percent to an annual rate of 693,000 in March after plunging by 5.1 percent to a revised rate of 637,000 in February.

Economists had expected new home sales to rise to an annual rate of 668,000 from the 662,000 originally reported for the previous month.

Building permits fell by 3.7 percent to a seasonally adjusted annual rate of 1.467 million in March 2024, revised from a preliminary estimate of 1.458 million. This follows a 2.3 percent increase in February.

Traders await more economic data this week, including the release of first-quarter U.S. GDP data as well as the core personal-consumption expenditures (PCE) price index, which is the Fed's preferred measure of inflation.

The dollar index dropped to 105.61, losing nearly 0.5%.

Against the Euro, the dollar weakened to 1.0702 from Monday's close of 1.0655. Against Pound Sterling, the dollar eased to 1.2448, down sharply from the previous close of 1.2349.

The dollar was flat against the Japanese currency at 154.82 yen a little while ago. Against the Aussie, the dollar weakened to 0.6489 from 0.6450. The Swiss franc was flat against the dollar at CHF 0.9119, easing from CHF 0.9087. Against the Loonie, the dollar was weak, fetching C$ 1.3663 a unit, after settling at C$ 1.3702 yesterday.

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