Investing.com - The dollar pulled back from recent lows against the euro and the yen on Tuesday, but the greenback’s gains were held in check amid persistent concerns over the outlook for the U.S. recovery.
EUR/USD edged down 0.07% to 1.3682, easing back from the five-week high of 1.3698 set on Monday.
The pair was likely to find support at 1.3640 and resistance at 1.3725.
The dollar has come under pressure since data last week showing a 2.9% economic contraction in the first quarter bolstered expectations that the Federal Reserve will keep rates on hold for an extended period.
Speaking Monday, San Francisco Fed President John Williams underlined this view, saying the bank will probably need to hold interest rates near zero for at least another year, despite signs that the economy is improving.
The dollar shrugged off data on Monday showing that U.S. pending home sales rose to an eight-month high in May, jumping 6%.
The euro remained supported after preliminary data on Monday showed that the annual rate of inflation in the euro zone remained unchanged at 0.5% in June, easing pressure on the European Central Bank to announce fresh monetary easing measures.
It was the ninth consecutive month in which the inflation rate was below 1%. The ECB targets an inflation rate of close to but just under 2.0%.
The dollar edged higher against the yen, with USD/JPY rising 0.12% to 101.44, not far from Monday’s six-week low of 101.22.
The shared currency was steady against the yen, with EUR/JPY at 138.79.