NEW YORK (MarketWatch) -- The dollar fell from a four-and-a-half year high against the yen but traded higher against the euro Tuesday, after broadly in-line housing figures did little to alter market expectations that the Federal Reserve will keep interest rates steady for some time.
The euro slightly trimmed its losses against the dollar following mixed housing starts and building permits data. Earlier, the euro came under some pressure after a report showed German business sentiment fell much more than expected in June.
"The buck just dodged a bullet as housing data came in...slightly better than expected," said Brian Dolan, chief currency strategist at Forex.com, a division of Gain Capital. "The market had been bracing for a softer number...so the weak housing market remains in the picture, but [there was] no immediate sign of a further deterioration in May's data."
In New York trading, the dollar was quoted at 123.35 yen, compared with 123.62 yen late Monday. The euro stood at $1.3405, compared with $1.3408.
The British pound stood at $1.9883, compared with $1.9830. The dollar changed hands at 1.2404 Swiss francs, compared with 1.2419 francs.
The euro was at 165.41 yen, compared with 165.76 yen, after touching an all-time high at 166.09 yen.
Source : forex.com
