(RTTNews) - The dollar continued its dramatic decline versus other major currencies on Tuesday, plunging to a fresh yearly low versus the yen while falling further against both the euro and sterling.
Increased risk appetite has fueled a summertime rally for European currencies, and with the US economy in the doldrums, the yen has become the preferred option for those still in search of a safe haven.
Stocks surged around the world on Monday, but were looking for direction this morning ahead of a trio of key economic data from the US.
The dollar dropped to its lowest since November 2009 versus the yen, hitting Y85.71 in very early dealing.
The buck extended its steep recent losses versus the euro, slipping another penny to 1.3260. With the decline, the dollar moved further from June's 4-year high of 1.1805.
Eurozone producer price inflation moderated unexpectedly in June from the previous year, reflecting muted inflationary pressures in the 16-nation bloc.
Producer prices rose at a pace of 3% year-on-year in June, slightly slower than the 3.1% increase seen in May, the European Union's statistical agency Eurostat said in a report on Tuesday.
The dollar slumped to a fresh 6-month low of 1.5967 versus the sterling, and held near C$1.0250 versus its Canadian counterpart.
The Bureau of Economic Analysis will release its report on personal income & outlays report at 8.30 a.m. ET. Economists anticipate that personal income rose 0.1% and personal spending remained unchanged in the month after rising 0.4% and 0.2% respectively in May.
At 10.00 a.m ET, the Commerce Department will table its report on factory goods orders for June. Economists expect that that factory orders declined 0.5% during the month, slightly lesser than the 1.4% fall registered in the previous month.
The National Association of Realtors will release data on pending home sales for June at 10.00 a.m ET. Economists estimate a 5% decline, following a sharp 30% decline in the previous month.
