The dollar skidded to a nearly two-week low against the euro on Tuesday on euro buying following weaker US economic data and easing concerns surrounding Greece's debt load, while the Australian dollar plunged on a central bank rate cut. A spell of weaker US data has dented confidence that the Federal Reserve will hike interest rates from rock-bottom levels by June, spurring many who had bet against the euro to 'cover' their short bets by rapidly repurchasing the currency.
The euro remained not far from an 11-year trough of $1.1098 touched on January 26, however, following the European Central Bank's launch of a landmark bond-buying program. The Swiss franc followed in the euro's footsteps and rebounded modestly against the dollar after hitting a more than two-week low against the greenback on Monday. The Australian dollar, meanwhile, was last down 1.4 percent against the greenback at $0.7692 after hitting a nearly six-year low of $0.7627 following the Reserve Bank of Australia's decision to cut interest rates. The move also pushed the New Zealand dollar to $0.7177, its lowest since early 2011.
The euro was last up 1 percent against the dollar at $1.14570. The dollar was last down 0.42 percent against the Swiss franc at 0.92285 franc. The dollar was mostly flat against the yen at 117.545 yen. The dollar index, which measures the greenback against a basket of six major currencies, was last down 0.73 percent at 93.811.
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