The US dollar that drifted slightly higher against most of its major rivals around 9:00 am ET Tuesday reversed its direction shortly after the report showed that home prices in July increased at a slower annual rate compared to June.
The report showed that the S&P/Case-Shiller 20-City Composite Home Price Index increased at an annual rate of 3.2 percent in July compared to a 4.2 percent increase in June. Economists had expected the index to increase at an annual rate of about 3.3 percent.
The greenback slumped to more than a 5-month low of 1.3511 against the euro around 9:05 am ET and the next likely support level is seen at 1.3640. The euro-buck pair is presently quoted at 1.3497.
The greenback also declined to 0.9831 against the Swiss franc and 84.08 versus the yen at this time from its recent highs of 0.9880 and 84.06, respectively hit in early trading.
On the flip side, the dollar rose to a 4-day high of 1.5779 against the pound by 9:00 am ET after the Bank of England’s MPC member Posen said that the economy needs further monetary action to sustain recovery.