On Tuesday the greenback was lower against its rivals, as appetite for riskier assets increased.
The U.S. Dollar Index which measures the dollar's performance against a basket of its six major rivals, dipped 0.32% to 96.546.
Earlier, official data showed U.S. retail sales fell 0.3% in June, their first decline in four months - below expectations of a 0.2% rise in sales. Sales for May and April were also revised lower.
EUR/USD rose 0.62% to 1.1067 on the hopes that the Greek parliament will pass a new legislation to raise sales taxes, reduce pension payments and enforce automatic spending cuts if the next budget misses its targets before negotiations on a third bailout program can begin.
Earlier Tuesday, the ZEW Centre for Economic Research said that its index of German economic sentiment dipped by 1.8 points to an eight-month low of 29.7 this month from June’s reading of 31.5. Analysts had expected the index to drop by 2.5 points to 29.0 in July.
The pound sterling was also higher on the comments by Bank of England Governor Mark Carney, with GBP/USD trading at 1.5613 up 0.84%.
In a testimony to the Treasury Committee in Westminster, he said that the time for a rate increase is approaching.
The remarks came after the U.K. Office for National Statistics reported that the rate of consumer price inflation was flat in June, down from 0.1% in May, while analysts had expected a reading of 0.1%.
Month-over-month, CPI was also flat last month, below estimates for 0.2% and following a 0.2% increase in May.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose at a rate of 0.8% in June, down from 0.9% in May and below forecasts for a reading of 0.9%.
Carney will now have to write an open letter to Chancellor George Osborne, as inflation is more than one percentage point below the central bank's target of 2.0%.
The Australian dollar was stronger, with AUD/USD up 0.90% to 0.7473.
The National Australia Bank earlier said that its business confidence index climbed to 10 last month from a reading of 7 in May.
