(RTTNews) - The U.S. dollar is exhibiting some weakness on Wednesday with traders closely following the developments on the geopolitical front following the missile blast in Poland, and digesting the latest batch of U.S. economic data.
Markets also noted the European Central Bank's comments in its Financial Stability Review, published today. Risks to financial stability in the euro area increased amid rising inflation and low economic growth, the ECB said in its review.
The ECB observed that financial conditions tightened as central banks took measures to combat inflation.
In U.S. economic news, the Commerce Department's data showed retail sales surged by 1.3% in October after coming in unchanged in September. Economists had expected retail sales to jump by 1%.
Meanwhile, the Federal Reserve released a separate report unexpectedly showing a modest decrease in U.S. industrial production in the month of October.
The Fed said industrial production edged down by 0.1% in October following a revised 0.1% uptick in September. Economists had expected industrial production to inch up by 0.2% compared to the 0.4% increase originally reported for the previous month.
The National Association of Home Builders' report showed a continued decrease in U.S. homebuilder confidence in the month of November.
The report showed the NAHB/Wells Fargo Housing Market Index declined for the 11th consecutive month, slumping to 33 in November after tumbling to 38 in October. Economists had expected the index to dip to 36.
The dollar index, which dropped to 105.86 in the Asian session, rallied to 106.60 this afternoon before drifting down to 106.28, down 0.11% from the previous close.
Against the Euro, the dollar is trading at 1.0392, easing from 1.0350.
The dollar is down against Pound Sterling at 1.1916, compared with the previous close of 1.1866.
Against the Japanese currency, the dollar has firmed to 139.55 yen, gaining from 139.31 yen a dollar.
The Aussie is slightly weak against the U.S. dollar with the AUD/USD pair at 0.6738.
Against Swiss franc, the dollar has regained lost ground and is up marginally, fetching CHF 0.9449 a unit.
The dollar is firm against the loonie at C$1.3333, gaining from C$1.3229.
