The dollar eased against major rivals today after a tame core wholesale inflation reading and weaker-than-expected housing data triggered concerns the Federal Reserve will soon stop raising interest rates.
Outside of food and energy, the core producer price index increased 0.1 per cent in March, the smallest gain since November, a Labor Department report showed. Economists surveyed by MarketWatch had been expecting the core to rise 0.2 per cent.
In early New York trading, the dollar was changing hands at 117.60 yen, down 0.2 per cent from late yesterday. The euro was up 0.3 per cent at $1.2289. Sterling rose 0.4 per cent to $1.7769. The dollar was last down 0.5 per cent at 1.2727 Swiss francs.
Adding to the dollar's woes was a Commerce Department report that showed new construction on US houses sank to the lowest level in a year.
At 2pm, the Federal Reserve will release the minutes from its March 27-28th monetary policy meeting, which is also the first meeting at which Ben Bernanke served as Fed chairman.
Currency investors will study the statement for any hints about the Fed's leanings on future interest rate increases and inflation.
"The market will be interested to see whether any members expressed opinions about the likely end of the cycle," said Steve Barrow, chief currency strategist at Bear Stearns.