Forex - Dollar fell yesterday after lower than expected US Consumer Confidence
The Dollar fell broadly on Tuesday, posting its steepest loss against the Euro in two weeks, sparking a rebound in commodity prices and helping to preserve investors’ appetite for risk.
News that US consumer confidence in March plunged to a five-year low, while expectations for the future dropped to their lowest level in 34 years also added to selling pressure on the Dollar. A separate report showed US home prices for January declined in 16 of the 20 regions measured.
Concerns about the health of the US economy and the global financial sector, which were heightened by the downbeat Consumer Con idence and Housing report, pushed the Dollar weaker versus the low yielding Japanese yen and Swiss franc.
The weak Dollar saw Gold and Oil prices rebound from last week’s declines, supporting US equities and lifting commodity-based currencies such as Australian and New Zealand dollars.