Investing.com - The dollar pushed broadly lower against a basket of other major currencies on Tuesday, after data showed that U.S. consumer confidence deteriorated unexpectedly in April, fuelling concerns over the strength of the economy.
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 data 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.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.53% to 96.39.
EUR/USD advanced 0.52% to three-week highs of 1.0949.
The euro found support after Greek Prime Minister Alexis Tsipras reshuffled the team handling talks with the country’s international lenders, fuelling optimism that a deal will be reached by early May.
The pound extended gains, with GBP/USD up 0.47% to nearly two-month highs of 1.5310.
Sterling came under pressure earlier, after the Office of National Statistics said the U.K. gross domestic product expanded 0.3% in the three months to March, slowing from 0.6% in the final quarter of 2014. It was the slowest rate of growth since the fourth quarter of 2012.
The consensus forecast among economists was for a more moderate slowdown to 0.5%.
On a year-over-year basis the U.K. economy grew 2.4%, below expectations for 2.6% after growth of 3.0% in the last three months of 2014.
Investors were also looking ahead to the outcome of the upcoming U.K. general elections on May 7, which could result in a hung parliament and an unstable coalition government, which could act as a drag on growth.
Elsewhere, the dollar was lower against the yen, with USD/JPY slipping 0.13% to 118.88 and steady against the Swiss franc, with USD/CHF at 0.9547.
The Australian and New Zealand dollars were sharply higher, with AUD/USD rallying 1.69% to three-month highs of 0.7989 and NZD/USD jumping 0.89% to 0.7714.
Meanwhile, USD/CAD slid 0.26% to trade at three-month lows of 1.2054 after Bank of Canada Governor Stephen Poloz said he expects a strong recovery in the second half of this year, boosted by strong U.S. demand in non-energy exports and a lower Canadian dollar.
Mr. Poloz also said that the Canadian economy most likely posted no growth in the first quarter.
The remarks were part of the BoC governor's opening statement to a committee of lawmakers in the Canadian parliament's lower house.