The U.S. dollar fell versus major rivals Tuesday amid concerns over the strength of the U.S. economic recovery. The greenback was trading low against the EUR and Yen on speculation a slowing U.S. economy will prompt the Federal Reserve to increase stimulus measures.
The U.S. currency struggled after Federal Reserve Chairman Ben Bernanke said on Monday that the economy has yet to recover fully and monetary policy must remain accommodating. The USD hit a 6 month low of $1.3230, while against the Japanese yen the Dollar fell to 85.86 its weakest since November 2009.
The greenback has slid over the past month after a run of disappointing U.S. data fuelled expectations that U.S. growth could lose momentum as official stimulus is withdrawn. The high point of the day ahead will be the Pending Home Sales figure.
The National Association of Realtors ( NAR ) Pending Home Sales Index for July later Tuesday should stabilize after plunging in June as the deadline had passed for contracts to meet requirements in the homebuyer tax credit program. If the actual results meet the market's expectations that will boost the U.S currency and may take it as high as 1.3150-1.3100.