The greenback resumed its downward trend against the euro and the pound Wednesday as bearish sentiment toward the dollar returned to the market.
Euros were trading for $1.4701, up from $1.4602 late Tuesday. One pound would buy $2.0732 vs. $2.0703 previously.
CurrencyShares Euro Trust
, which tracks the value of the euro, was ahead by 0.7%, while the
CurrencyShares British Pound Sterling Trust
, which tracks the value of the pound, was edging 0.1% higher.
"The market is focusing on whatever is negative for the dollar," explains David Powell, a currency strategist at IDEAglobal in New York.
That meant a benign report on inflation together with unsurprising retail sales figures were seen as paving the way for a cut in interest rates by the
if it sees fit. Yield-seeking foreign-exchange investors tend to invest in currencies that provide stronger returns on cash deposits, and those reside in countries with higher rates.
The core producer price index, which excludes food and energy, remained flat during October, vs. expectations of a 0.2% increase, while retail sales grew roughly in line with the consensus forecasts during the month.
"In general the data alleviate the pressure to keep rates higher," adds Powell.
Elsewhere in the currency markets, the dollar was gaining against the yen. One U.S. dollar would buy 111.32 Japanese yen, up from 110.89 yen previously.
CurrencyShares Japanese Yen Trust
was losing 0.7%.