Investing.com - The dollar index fell to session lows on Tuesday, as disappointing U.S. consumer confidence data offset an unexpectedly strong report on U.S. third quarter growth.
In a report, the Conference Board said its index of consumer confidence fell to 88.7 this month from a reading of 94.1 in October, whose figure was revised down from a previously reported 94.5.
Analysts expected the index to increase to 95.9 in November.
The data came after the Commerce Department said U.S. gross domestic product grew at an annual rate of 3.9% in the three months ending September 30, above expectations for a reading of 3.3%.
Preliminary data initially pegged U.S. growth at 3.5% in the third quarter. The U.S. economy expanded by 4.6% in the previous quarter.
USD/JPY slipped 0.29% to 117.93, near lows of 117.68 struck earlier in the session.
The yen found some support after Bank of Japan Governor Haruhiko Kuroda voiced concerns over the economic impact of the weaker yen earlier Tuesday. The yen received an additional boost after the minutes of the BoJ’s October meeting showed that some officials opposed plans to expand its stimulus program.
Separately, the Organization for Economic Co-operation and Development cut its forecast for economic growth in Japan this year and next after data last week showed that the country unexpectedly fell into a recession in the third quarter.
The think-tank said it still expects the global economy to grow by 3.3% this year and 3.7% in 2015.
The euro edged higher against the dollar, with EUR/USD up 0.21% to 1.2469.
Data on Tuesday confirmed that Germany narrowly avoided a recession in the third quarter, posting economic growth of 0.1%. Consumer spending rose by 0.7%, while exports were 1.9% higher.
The OECD warned that the euro area is at risk of deflation if growth stagnates or if inflation expectations continue to deteriorate and urged the European Central Bank to embark on quantitative easing measures.
Elsewhere, GBP/USD held steady at 1.5714, while USD/CHF fell 0.21% to 0.9645.
Sterling came under pressure after Bank of England Governor Mark Carney said the U.K. economy faces heightened risks from geopolitical tensions and slowing global growth, noting that economic conditions have deteriorated in the euro zone and Japan in recent months.
Carney reiterated that it is “more likely than not” than U.K. inflation will fall below 1% in the next few months. However the central bank expects inflation will move back towards its 2% target in the medium term, as wage increases pick up.
The Australian and New Zealand dollars were sharply lower, with AUD/USD down 0.96% to 0.8533 and NZD/USD retreating 0.71% to 0.7805. USD/CAD shed 0.35% to 1.1243.
In Canada, data showed that retail sales rose 0.8% in September, more than the expected 0.6% gain, after a 0.2% slip in August.
The US dollar index, which tracks the performance of the greenback against a basket of six major currencies, slid 0.25% to 87.97.