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Dollar dips despite strong data

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(Globalpost/GlobalPost)

The dollar Tuesday retreated against some major currencies despite better economic data and comments from a key Federal Reserve official that its aggressive stimulus program could be tapered soon.

Near 2200 GMT, the euro traded at $1.3306, compared with $1.3255 Monday.

The dollar fell to 97.76 yen from 98.22 yen.

The euro slipped to 130.10 yen from 130.20 yen.

The Commerce Department's trade data for June showed a narrowing trade deficit, which analysts said points to a likely upward revision to the growth estimate for the quarter, and firm growth in the current quarter.

Also Tuesday, Chicago Federal Reserve President Charles Evans said the Fed could taper its $85 billion-a-month bond-buying program in September.

Evans is a voting member of the Fed's policy-making Federal Open Market Committee and is considered "dovish" on monetary policy, said BK Asset Management's Kathy Lien.

"The US trade balance reached its best level since October 2009 and yet the dollar barely budged," Lien said.

Joe Manimbo, senior market analyst at Western Union Business Solutions, said the dollar is continuing to feel the weight from Friday's disappointing monthly jobs report, which dimmed some expectations for a September taper.

"The dollar hasn't been quite the same since Friday data showed the coolest pace of US hiring in four months in July," Manimbo said.

Among other currencies, British pound slipped to $1.5347 from $1.5352 Monday.

The dollar dipped to 0.9258 Swiss franc from 0.9273.

jmb/pmh

http://www.globalpost.com/dispatch/news/afp/130806/dollar-dips-despite-strong-data