Forex - Dollar Holds Near 1-Week Lows after US Data

© Reuters. Dollar holds near 1-week lows after U.S. data

Investing.com - The dollar held near one-week lows against the other major currencies on Wednesday as soft U.S. retail sales data and heightened tensions over global trade continued to weigh on investor sentiment.

The , which measures the greenback’s strength against a basket of six major currencies, was little changed for the day at 89.75 by 08:57 AM ET (12:57 GMT).

Data released on Wednesday showed that fell 0.1% in February. It was the third consecutive monthly decline, raising fears over a slowdown in growth in the first quarter.

At the same time, another report showed that rose slightly more than expected last month.

The reports came a day after data showing that U.S. consumer price inflation remained muted in February, cementing expectations that the Federal Reserve is unlikely to raise rates more than three times this year.

The Fed is to hold a two-day policy meeting starting next Tuesday and is widely expected to hike rates for the first time this year.

Concerns over and trade uncertainties also weighed on market sentiment; following reports Tuesday that U.S. President Donald Trump is seeking to impose , targeting the technology and telecommunications sectors.

Trade tensions had already mounted after Trump last week announced plans to levy tariffs on steel and aluminum imports.

The dollar was a touch higher against the euro, with sliding 0.14% to 1.2373 as dovish remarks by European Central Bank officials weighed on the single currency.

ECB President Mario Draghi said earlier Wednesday that officials still need to see of just below 2% before it would consider the removal of monetary stimulus.

The dollar was little changed against the yen, with last at 106.52.

The yen had come under pressure since the start of the week amid a growing cronyism scandal linked to the Japanese Prime Minister and his wife involving the sale of public land.

The scandal raised concerns over Abe’s ability to continue pursuing his Abenomics policies, which include aggressive monetary easing.

The pound was steady against the dollar, with most recently at 1.3965.

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