The dollar gave up early gains on Tuesday amid disappointing news on the U.S. housing market.
The NAHB/Wells Fargo Housing Market index rose to 47 in April from a downwardly revised 46 in March, the group said in a statement. Economists expected a reading of 50.
There was little reaction to news that U.S. consumer prices rose in line with estimates in March.
The Labor Department said its Consumer Price Index increased 0.2 percent last month.
The dollar improved to $1.38 versus the euro before easing back to $1.3830. A weak reading on German economic sentiment did little for the dollar.
The German ZEW survey of investor and analyst sentiment in Europe’s largest economy fell for a fourth consecutive month in April.
The dollar failed to rally versus the sterling amid U.K. consumer price figures. The pair was stuck at $1.6720 by day’s end.
Official data showed that U.K. consumer price inflation rose 0.2% in March, in line with expectations, after a 0.5% increase the previous month.
The dollar also saw little movement against the yen, unable to take back recent losses. The pair held near Y101.55, down fractionally from the previous session.