Up On Safe Haven Demand

Up On Safe Haven Demand



The dollar found support Tuesday morning in New York, bolstered by its safe haven status amid concerns that global stocks are headed lower.
Greece's sovereign debt crisis is on the back-burner for now, but the global economic recovery faces numerous headwinds, including austerity in Europe and a potential slowdown in China.
After coming under pressure in the previous two sessions, the dollar was on pause near $1.32 versus the resilient euro. Last week the buck topped out near $1.30 before turning lower.
Germany's producer price inflation eased for the fifth month to a 20-month low in February, data from the Federal Statistical Office showed Tuesday.
The producer price index increased 3.2 percent annually in February in line with economists' expectations, slower than the 3.4 percent rise in January.
The buck continued a run of choppy trading versus the sterling, holding at $1.5850 after losing a few cents on Monday.
Inflation in the United Kingdom slowed for a fifth consecutive month in February to reach the lowest in fifteen months with costs of electricity, gas, transport and recreation putting the largest downward pressure on price levels.
The latest figures from the Office for National Statistics revealed Tuesday that the annual consumer price inflation eased to 3.4 percent in February from 3.6 percent in January.
Modest early gains took the dollar to Y83.70 versus the yen, near last week's 11-month peak of Y84.17.
U.S. housing data may attract some attention on Tuesday, with the Commerce Department due to release its report on housing starts in the month of February.


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