The Dollar was moderately lower against the other major currencies on Tuesday, despite the release of upbeat US consumer confidence data as investors remained cautious ahead of a speech by Federal Reserve Chair Janet Yellen. The Conference Board reported that its index of consumer confidence rose to 96.2 this month from a reading of 94.0 in February, whose figure was revised from a previously reported 92.2. Forecasts were for the index to increase to 94.0 in March.
The Yen weakened after Japanese Prime Minister Shinzo Abe said that he will proceed with a planned sales tax hike next April unless the economy is hit by a severe shock. Most had expected Abe to delay the planned tax hike which could threaten Japan's fragile economic recovery. The USD/JPY was down 0.11% at ¥113.32.
The EUR/USD was up 0.09% at $1.1207. The Dollar was lower against the Pound with the GBP/USD up 0.15% at $1.4276 and was steady against the Swiss franc with the USD/CHF at Gr0.9739.
The Australian and New Zealand dollars were both stronger with the AUD/USD up 0.13% at $0.7555 and the NZD/USD was up 0.98% at $0.6791. Statistics Canada reported on Tuesday that the raw materials price index fell by 2.6% in February, compared to forecasts for a 0.8% decline. Year-on-year, raw material prices dropped 15.1% last month. The USD/CAD fell 0.20% to CAD$1.3160. The US Dollar Index was down 0.15% at 95.85.
