Investing.com - The dollar was little changed against the other major currencies on Monday, despite the release of disapointing U.S. new home sales data as Federal Reserve Chair Janet Yellen's upbeat comments on Friday still supported demand for the greenback.
In a report, the U.S. Commerce Department said new home sales dropped by 2.4% to 412,000 units last month, compared to expectations for an increase of 5.7% to 430,000.
New home sales in June were revised up to 422,000 units from a previously reported 406,000 units.
The dollar remained supported after Fed Chair Janet Yellen said on Friday that the U.S. economy is recovering and added the labor market is improving as well.
Ms. Yellen was speaking at the Fed's annual meeting of top central bankers and economists in Jackson Hole, Wyoming.
EUR/USD slid 0.28% to 1.3201, after European Central Bank President Mario Draghi told the Jackson Hole gathering that the central bank is ready to take more unconventional action if needed to stimulate a sluggish euro zone economy.
Earlier Monday, the German research institute Ifo said its Business Climate Index fell to a more than one-year low of 106.3 this month, below forecasts for 107.0 and down from a reading of 108.0 in July.
The weak data dampened optimism over the health of the euro zone’s largest economy.
The pound held steady, near five-month lows with GBP/USD at 1.6584.
The dollar was little changed against the yen and the Swiss franc, with USD/JPY at 103.96 and with USD/CHF at 0.9144.
Meanwhile, AUD/USD edged down 0.19% to 0.9298 and NZD/USD retreated 0.59% to 0.8352, while USD/CAD rose 0.23% to 1.0970.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.19% at 82.54, the highest since September.