Dollar slips on lower consumer confidence

November 27, 2013 | 09:47

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The dollar on Tuesday fell against major currencies following a disappointing report on US consumer confidence in November.

A 20-dollar US bill. (AFP/Mark Wilson)

NEW YORK: The dollar on Tuesday fell against major currencies following a disappointing report on US consumer confidence in November.

Near 2300 GMT, the euro advanced to $1.3569 from $1.3517 Monday.

The dollar also slipped to 101.31 Japanese yen from 101.66.

The euro bought 137.46 of the Japanese currency, up from 137.43.

The Conference Board's consumer confidence index came in at a disappointing 70.4 in November, down from 72.4 the previous month. The result indicated the agreement in Washington to avert a debt default did not significantly reassure consumers, analysts said.

Christopher Vecchio, currency analyst at DailyFX, noted that the Conference Board's report pushed the dollar down from its daily high against the yen.

The report is concerning to the US Federal Reserve, said BK Asset Management currency analyst Kathy Lien. The Fed has said it could scale back its bond-buying program in the coming months.

"Even if there are more jobs, consumers need to be confident to spend," Lien said.

"Retailers are worried that this holiday shopping season could be the weakest since 2009, and if they are right, it will be very difficult for the Fed to justify tapering this year."

Lien said she expects the Fed will wait until 2014 to scale back its bond-buying programme, a delay that would likely weaken the dollar.

The British pound rose to $1.6216 from $1.6160.

The dollar slipped to 0.9069 Swiss franc from 0.9117.

AFP

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