Dollar ends lower ahead of Fed's decision on drop in US yields

The greenback ended the day lower against majority of its peers on falling U.S. yields and as investors squared usd positions ahead of the Federal Reserve's rate decision on Wednesday.  
  
Versus the Japanese yen, dollar met renewed selling at 110.39 in Australia and fell in tandem with U.S. yields to 109.99 in early European morning. The pair then ratcheted lower to a 1-week low at 109.59 in New York before staging a short covering rebound to 109.81.  
  
The single currency met selling interest at 1.1812 at Asian open and fell to session lows at 1.1771 in European morning on risk-aversion due to a drop in European bourses. However, the pair erased its losses and rallied to a 12-day peak at 1.1841 in New York afternoon on usd's broad-based weakness before retreating to 1.1816 on profit-taking.  
  
The British pound traded sideways in Asia before falling in tandem with euro to session lows at 1.3767 in European morning. The pair then erased its losses and rallied to a near 2-week high at 1.3894 in New York due to a bout of sterling demand near European close together with usd's weakness.  
  
On the data front, Reuters reported U.S. consumer confidence hovered at a 17-month high in July, suggesting the economy maintained its strong growth clip at the start of the third quarter.    The Conference Board said on Tuesday its consumer confidence index was little changed at a reading of 129.1 this month, the highest level since February 2020. Economists polled by Reuters had forecast the index falling to 123.9. The survey places more emphasis on the labor market.  
  
  
Data to be released on Wednesday:  
  
U.K. BRC shop price index, Australia CPI, Japan coincident index, leading indicator, Germany Gfk consumer sentiment, France consumer confidence, Italy business confidence, consumer confidence, Swiss investor sentiment, U.S. MBA mortgage application good trade balance, wholesale inventories, Fed interest rate decision and Canada CPI.