(RTTNews) - The dollar dropped to its lowest since November versus the sterling Tuesday morning, stung by yesterday's dovish remarks from Federal Reserve Chairman Ben Bernanke.
The nation's top central banker assured that the Fed would continue to promote economic growth with near zero interest rates until the recovery is self-sustaining.
Ahead of the latest reading on the mindset of the U.S. consumer, the dollar dropped to $1.3384 versus the euro, its lowest since February 29. The dollar has dropped almost four cents in the past two weeks.
Germany's consumer confidence is set to drop in April as fuel price increases weighed on income expectations, while the easing debt crisis boosted consumers' economic expectations.
The forward-looking consumer sentiment index came in at 5.9 for April, down slightly from a 12-month high of 6 points in March, a survey by market research group GfK showed Tuesday.
The buck dropped to a 4-month low of $1.5998 versus the sterling, having dropped four cents from its mid-March highs.
There was little movement versus the yen, with the buck holding near Y83.
On the economic front, the Conference Board is set to release its report on U.S. consumer confidence at 10 am ET. The report, which is based on a survey of 5,000 U.S. households, is expected to show that the consumer confidence index rose to70.9 in March.
The S&P/Case-Shiller home price index is scheduled to be released at 9 am. Economists expect a seasonally adjusted 0.2 percent month-over-month drop in the 20-city composite house price index for January compared to a 0.5 percent drop in the previous month.
Boston Federal Reserve Bank President Eric Rosengren is scheduled to speak to the National Institute for Economic and Social Research in London.
The Richmond Federal Reserve's manufacturing index due to be released at 10 am ET is expected to see a 2-point drop to 18 in March.
