No Rest For The Weary Dollar Versus Euro

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The dollar fell further versus the euro and weakened against its Canadian counterpart on Tuesday as traders assessed a pile of economic data, including an encouraging report on retail sales.

With the government's cash-for-clunkers program contributing to a substantial increase in auto sales, the Commerce Department released a report Tuesday morning showing that retail sales increased by much more than expected in the month of August.

Also, Federal Reserve Bank Chairman Ben Bernanke sounded a hopeful note in saying that the U.S. is beginning to emerge from a deep recession that is "technically over."

With stocks on the rise and the economic horizon brightening, increased risk appetite drove the dollar to a fresh 2009 low against the euro. The buck dropped to 1.4685, down more than a cent from its early highs.

Versus the loonie, the dollar fell sharply to a weekly low of C$1.0710. With the loss, the buck moved closer to a yearly low of C$1.0630.

The buck was stable versus the yen, staying within hailing distance of last week's 7-month low of 90.18.

Concerns about the health of the UK economy has kept the dollar afloat versus the sterling. The dollar rose to 1.6450 on Tuesday, extending a long run of choppy trading.

UK annual inflation eased less than expected in August. But, the annual rate stayed below the central bank's 2% target for the third straight month.

In more economic news from the US, Conditions for New York manufacturers continued to improve in September, according to a report released by the Federal Reserve Bank of New York on Tuesday.

(Market News Provided by RTTNews)