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Dollar slips vs. euro, yen, pound remains weaker

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Shutterstock photo - The dollar slipped lower against the euro and the yen on Tuesday, while the pound fell to fresh two-and-a-half year lows after weak U.K. manufacturing output data reinforced fears over a triple-dip recession.

During U.S. morning trade, the dollar hit its highest level since June 2010 against the pound, with GBP/USD down 0.32% to 1.4867 after data showed that manufacturing output in the U.K. posted the steepest drop since June in January.

The Office for National Statistics said that manufacturing production dropped 1.5% in January, missing expectations for a 0.1% increase.

The ONS said industrial output also missed forecasts for 0.1% increase, falling 1.2% in January.

Elsewhere, the dollar slipped against the yen, with USD/JPY dipping 0.09% to 95.81, down from a session high of 96.72, the pair's highest level since August 2009.

The yen touched fresh three-and-a-half year lows against the dollar earlier after reports in the Japanese media suggested that Bank of Japan governor nominee Haruhiko Kuroda could begin to implement fresh monetary easing steps after he takes office next week and may not wait for the bank's next policy meeting in early April.

On Monday, Kuroda said he would do "whatever is needed" to beat deflation and achieve the government's 2.0% inflation target. The comments came during a second parliamentary confirmation hearing in Japan's upper house.

Meanwhile, Tuesday's minutes of the BoJ's February meeting showed that some policymakers said bond purchases could be considered as an option for further monetary easing.

The dollar turned lower against the euro, with EUR/USD rising 0.15% to 1.3064.

Sentiment on the single currency remained fragile amid concerns over the economic outlook for the euro zone, while worries over ongoing political uncertainty in Italy also weighed.

The greenback was also lower against the Swiss franc with USD/CHF down 0.52% to 0.9446.

The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD dipping 0.01% to 1.0257, AUD/USD climbing 0.52% to 1.0332 and NZD/USD down 0.24% to 0.8260.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, inched down 0.08% to 82.74.

The dollar remained stronger after data on Friday showed that the U.S. economy added significantly more jobs than forecast in February, with the unemployment rate falling to a four-year low of 7.7%. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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