The dollar on Tuesday fell against the euro to its lowest in seven weeks after a gauge of manufacturing in New York state slowed in February, stoking uncertainty about the direction of the Federal Reserve's monetary policy. The New York Fed's "Empire State" general business conditions index fell to 4.48 in February from 12.51 in January. Economists polled by Reuters had expected a reading of 9.0.
The euro rose to $1.3769, marking a seven-week high against the dollar and surpassing a key resistance of $1.3740. The euro barely reacted to a mixed German ZEW survey of analyst and investor sentiment. It was last at $1.3756, up 0.4 percent on the day. The euro also raced to a six-week peak against the Swedish crown of 8.9180 crowns after consumer prices in Sweden fell more than expected in January and revived talk of an interest rate cut.
The euro rose as well against the British pound to trade at 82.37 pence after softer-than-expected UK inflation data. The dollar was up 0.41 percent at 102.36 yen, having hit a February high of 102.73, while the euro was up 0.75 percent at 140.76 yen. In other currency pairs, the dollar hit a seven-week trough against the Swiss franc at 0.8868 franc.
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