Investing.com - The euro rose to three-week highs against the broadly weaker dollar on Tuesday as data showing that U.S. consumer confidence deteriorated last month added to concerns that the economic recovery is losing momentum.
EUR/USD was last at 1.0972, the most since April 6, 0.77% higher for the day.
The dollar turned lower after the Conference Board reported that its consumer confidence index slumped to 95.2 in April, well below the forecast of 102.5 and down from 101.4 in March.
Inflation rate expectations were the lowest since February 2007.
The report said the deterioration in confidence was due to the recent lackluster performance of the labor market and apprehension about the short-term outlook.
The report came as investors were looking ahead to Wednesday’s Federal Reserve rate statement for further indications on the timing of a first rate hike by the central bank.
Recent disappointing reports on employment, retail sales and industrial production have prompted investors to scale back expectations for higher interest rates.
Earlier Tuesday data showed that U.S. home prices rose in February from a year earlier.
The S&P/Case-Shiller home price index rose by an annualized 5.0% in February, above forecasts for a reading of 4.7% and following a gain of 4.6% in January.
Demand for the euro continued to be underpinned amid optimism that Greece is moving closer to reaching an agreement with its creditors on a package of economic reforms for bailout funds.
Greek Prime Minister Alexis Tsipras on Monday reshuffled the team handling talks with the country’s international lenders fuelling hopes that a deal can be reached in time to avert a default.
Elsewhere, the dollar was at session lows against the yen, with USD/JPY down 0.2% to 118.81.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last down 0.68% at 96.23.