(RTTNews) - The U.S. dollar stayed weak for much of the day's trading session on Tuesday as a sharp drop in oil prices eased fears about inflation. Data showing a contraction in business activity in New York weighed as well on the currency.
Investors looked ahead to the upcoming data on retail sales, industrial production and a reading of the Philadelphia Fed Manufacturing index.
The Federal Reserve Bank of New York released a report showing regional manufacturing activity has returned to contraction in the month of October.
The New York Fed said its general business conditions index tumbled to a negative 11.9 in October from a positive 11.5 in September, with a negative reading indicating contraction. Economists had expected the index to decrease to a positive 2.3.
Despite the downturn in October, the New York Fed said optimism about the six-month outlook grew strongly, with the index for future business activity jumping to a multi-year high of 38.7 in October from 30.6 in September.
The dollar index, which dropped to 103.03, recovered to 103.35 before easing to 103.24, netting a marginal loss.
Against the Euro, the dollar firmed to 1.0893 from 1.0911. The dollar weakened to 1.3104 in early New York session, and despite recovering to 1.3071, remained slightly weak.
Against the Japanese currency, the dollar was weak at 149.20 yen, compared to the previous close of 149.76 yen a unit. The dollar firmed against the Aussie to 0.6703 from 0.6727.
The Swiss franc gained marginally against the dollar at CHF 0.8622. The Loonie strengthened to 1.3771 a U.S. dollar, from 1.3797.
