Although the greenback edged lower in European session, price later pared its losses in New York and ended marginally lower against majority of its peers on Tuesday in New York as investors remained cautious ahead of the release of U.S. inflation data on Wednesday.
Reuters reported U.S. worker productivity fell sharply in the second quarter and on an annual basis posted a record decline, the Labor Department said on Tuesday. Nonfarm productivity, which measures hourly output per worker, fell at 4.6% annualized rate last quarter, after having declined by 7.4% in the first three months of the year, the report showed. Economists polled had expected productivity would decline at a 4.7% rate in the April-June period. Productivity fell at 2.5% pace from a year ago.
Versus the Japanese yen, dollar found renewed buying at 134.68 in Asian morning and traded with a firm bias. The pair gained to 135.19 at New York open before edging marginally higher to session highs of 135.20 near the close as focus remained on other dollar majors.
The single currency found renewed buying at 1.0189 in Asian morning and rose to an intra-day high at 1.0247 in European morning on usd's broad-based weakness together with cross-buying in euro. The pair then pared its gains and retreated to 1.0204 in New York before moving sideways.
The British pound traded with a firm bias in Asia before briefly falling to 1.2066 in early European morning before rising in tandem with euro to an intra-day high at 1.2130 in Europe. The pair then retreated sharply in New York to session lows of 1.2063 in New York on usd's rebound together with cross-selling in sterling especially vs euro.
Data to be released on Wednesday
Japan producer prices, Australia consumer sentiment, China PPI, CPI.Germany CPI, Italy CPI, U.S. MBA mortgage application, CPI, wholesale inventories and Federal budget.
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