Dollar falls to 3-month low ahead of US consumer confidence data

US dollar fell in the European market on Tuesday against a basket of global currencies, continuing its losses for the fifth day in a row, recording a three-month low after the US currency lost its appeal after strong prospects indicated that the Federal Reserve is likely going to ease the monetary policy this year, which comes ahead of major data on consumer confidence levels in the world's largest economy for June.

The dollar index fell more than 0.1% to 95.84 points, the lowest since March 21, from the opening level of today at 96.00 points, with the highest at 96.08 points.

The index fell 0.2% on Monday, its fourth consecutive daily loss, as the US currency sell-off continued against a basket of major and minor currencies.

Over the past week, the index lost 1.5%, the second weekly loss in the last three weeks, and the biggest weekly loss since June 2018, after strong prospects indicated that the Federal Reserve is likely going to cut interest rates after the last meeting.

The US central bank said last week that interest rate cuts prospects are on the rise, boosting the possibility of easing monetary policy at the July meeting, to help the bank to combat growing global and domestic risks.

Investors anticipate the release important data, with the release of the US consumer confidence for this month. as in case of negative data  the losses of the US dollar will deepen against most currencies.

By 14:00 GMT, the CB Consumer Confidence Index for June is expected to be at 132.0 points from 134.1 points in May.