The U.S. dollar remained broadly lower against other major currencies on Tuesday, as sentiment on the greenback became more vulnerable in the face of recovering equity markets.
U.S. equity markets were especially boosted by news on Monday of a $2 billion infrastructure plan by the Trump administration.
The plan is part of the two-year budget agreement passed by the U.S. Congress last Friday, ending a brief government shutdown.
The agreement is set to boost federal spending by almost $300 billion and suspend the debt ceiling for a year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.36% at 89.69 by 05:15 a.m. ET (09:15 GMT),
The euro and the pound were higher, with EUR/USD up 0.27% at 1.2325 and with GBP/USD also gaining 0.47% to 1.3904.
Data earlier showed that Britain’s inflation rate was steady in January.
The UK Office for National Statistics said that the consumer price index rose to 3.0% in January, the same as the prior month. Economists had expected a reading of 2.9%.
The yen and the Swiss franc were also stronger, with USD/JPY down 0.94% at 107.63 and with USD/CHF shedding 0.43% to 0.9353.
Elsewhere, the Australian and New Zealand dollars were higher, with AUD/USD up 0.09% at 0.7868 and with NZD/USD gaining 0.39% to 0.7290.
Meanwhile, USD/CAD was almost unchanged at 1.2581.