Dollar edges lower after US housing data disappoints

The US dollar dropped to its lowest in two weeks on Tuesday following the negative US housing data, indicating the continued volatility in the housing sector in the largest economy in the world.

US Dollar Index dropped 0.66% at 14:09 GMT around 87.82, compared with the entry levels 88.44.

The U.S. housing starts declined 1.6% in November compared with the expectations of a 3.1% hike. While U.S. building permits fell by 5.2% last month compared with the expectations of a 2.5% decline.

Several economic data released ranged between positive and negative, whereas the ongoing volatility is still ongoing in the world’s largest economy, but the recovery is moving properly.

The dollar retreated after the positive European data that showed the expansion of economic activities in the German industrial sector, next to the positive confidence data.

Market’s focus is now turned to the Federal Open Market Committee meeting on Wednesday, waiting to pick up any signal of the Federal Reserve’s intentions towards raising interest rates.

The US dollar dipped against the Japanese yen by 1.36% around 116.19, compared with the entry levels 117.8.