The U.S. dollar remained weak throughout much of Tuesday’s trading session as a significant drop in oil prices alleviated concerns over inflation. Additionally, data indicating a decline in business activity in New York further pressured the currency.
Investors are now focusing on forthcoming data related to retail sales, industrial production, and the Philadelphia Fed Manufacturing index.
The Federal Reserve Bank of New York published a report revealing that regional manufacturing activity has fallen back into contraction for October.
The New York Fed’s general business conditions index plummeted to a negative 11.9 in October, down from a positive 11.5 in September, with a negative value signaling contraction. Economists had anticipated a drop to a positive 2.3.
Despite the downturn in October, the New York Fed noted a significant increase in optimism about the six-month outlook, with the future business activity index soaring to a multi-year high of 38.7 in October, up from 30.6 in September.
The dollar index, which fell to 103.03, bounced back to 103.35 before settling at 103.24, reflecting a slight loss.
Against the Euro, the dollar improved to 1.0893 from 1.0911. The dollar dropped to 1.3104 during the early New York session, recovering to 1.3071 but still showing slight weakness.
In relation to the Japanese currency, the dollar was weak at 149.20 yen, down from a previous close of 149.76 yen. However, the dollar strengthened against the Aussie, moving up to 0.6703 from 0.6727.
The Swiss franc gained slightly against the dollar, now at CHF 0.8622. The Loonie also strengthened, trading at 1.3771 per U.S. dollar, compared to 1.3797.
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