Dollar Turns In Another Lackluster Performance

(RTTNews) - The U.S. dollar turned in a lackluster performance on Monday with investors awaiting a slew of economic data, including the Fed's preferred gauge of inflation on Thursday for further clues on the prospects of early rate cuts.

Federal Reserve Bank of New York President John Williams said in an interview published Friday that the U.S. central bank is on track to cut interest rates "later this year."

Data on durable goods orders, new home sales, consumer confidence and manufacturing activity are also due this week. There are expectations of a positive outcome in the U.S. Q4 GDP data to be released on Wednesday.

A string of speeches by Federal Reserve officials this week may provide additional clarity on the timing and pace of rate cuts.

Investors also await inflation data from Germany, France, Spain and the euro zone.

In economic news today, data released by the Commerce Department showed new home sales climbed 1.5 percent to an annual rate of 661,000 in January after surging by 7.3 percent to a revised rate of 651,000 in December.

With the increase, new home sales continued to regain ground after hitting their lowest level in a year in November. Economists had expected new home sales to jump by 2.4 percent to a rate of 680,000 in January from the 664,000 originally reported for the previous month.

The dollar index, which dropped to 103.71, was at 103.78 a little while ago, down 0.15 percent from the previous close.

Against the Euro, the dollar weakened to 1.0853. Against Pound Sterling, the dollar eased to 1.2685 a unit the British currency. The dollar firmed against the Japanese currency, fetching 150.71 yen a unit.

The dollar strengthened to 0.6540 against the Aussie, and weakened to CHF 0.8800 against Swiss franc. The loonie edged up against the dollar to C$1.3505, gaining marginally.