NEW YORK: The euro's fall continued on Tuesday, pulled down by a weak batch of German data and hints the European Central Bank could unveil easing measures to fight off deflation.
The single currency logged its third straight daily drop against the dollar, sinking to $1.3169, the lowest level since early September 2013.
Behind the euro's weakness was Monday's report that Germany's Ifo business confidence index fell to the lowest level in 13 months in August.
In addition, the dollar pulled support from data showing a strong rise in US durable goods orders in July, and a surge in consumer confidence that added to signs of steady overall economic gains.
"It seems as though the (Federal Reserve's) Federal Open Market Committee is running out of arguments to retain its highly accommodative policy stance amid the ongoing improvements in the world's largest economy," said David Song of DailyFX.
"The bullish sentiment surrounding the dollar may gather pace throughout the coming months should we see a growing number of central bank officials adopt a more hawkish tone for monetary policy."
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