Dollar Drifts Lower Against Major Counterparts As Weak Data Weigh

(RTTNews) - The U.S. dollar drifted lower against most of its major counterparts on Tuesday, extending recent losses, as weak economic data raised speculation the Fed will soon stop its tightening cycle.

The dollar fell to multi-month lows against some of the major currencies.

Data from the Labor Department showed job openings in the U.S. decreased by more than expected in the month of February.

The report said job openings fell to 9.9 million in February from a revised 10.6 million in January. Economists had expected job openings to decline to 10.4 million from the 10.8 million originally reported for the previous month.

"February's JOLTS report is an indication that the softening in the labor market may be gaining some momentum," said Matthew Martin, U.S. Economist at Oxford Economics.

He added, "To be sure, job openings remain highly elevated, but February's level is the first month below 10k since June 2021 and suggests businesses are becoming more wary about additional headcount.

A separate report released by the Commerce Department showed factory orders slid by 0.7% in February after plunging by a revised 2.1% in January.

Economists had expected factory orders to decrease by 0.5% compared to the 1.6% slump originally reported for the previous month.

Durable goods orders fell by 1% in February after plummeting by 5% in January. Orders for non-durable goods dipped by 0.4% in February after jumping by 1.1% in January.

Traders also continued to look ahead to the release of the Labor Department's closely watched monthly jobs report on Friday.

The dollar index dropped to 101.46 around late morning, and continues to stay weak. The index is currently hovering around 101.55, down more than 0.5% from the previous close.

Against the Euro, the dollar is trading at 1.0959, declining from 1.0905.

The dollar is at 1.2501 against Pound Sterling, weakening from 1.2417. Against the Japanese currency, the dollar is weak at 131.66 yen, nearly 0.6% down from Monday's close of 132.42 yen.

Against the Aussie, the dollar is up at 0.6750, gaining from 0.6786. The Swiss franc is stronger at CHF 0.9059 a dollar, firming from CHF 0.9127.

The Loonie is down marginally at 1.3449 a dollar.