Investing.com - The euro extended losses against the dollar on Tuesday, falling to the lowest level in eight months as the diverging monetary policy stance between the European Central Bank and other central bank’s weighed.
EUR/USD dropped 0.44% to 1.3464, the lowest since November 21.
The pair was likely to find support at 1.3425 and resistance at 1.3528, the session high.
The euro remained under pressure after recent comments by ECB President Mario Draghi were seen as the latest sign that the bank is open to further monetary easing measures to stave off the risk of deflation in the euro area.
In contrast, Federal Reserve Chair Janet Yellen indicated last week that interest rates may rise sooner if the recovery in the labor market continued.
Official data on Tuesday showed that the annual rate of U.S. inflation was at 1.2% in June, unchanged from the previous month and in line with forecasts.
On a month-over-month basis, U.S. consumer prices were up 0.3% after a 0.4% increase in May.
Core inflation, which excludes food and energy costs, rose by just 0.1% month-on-month, or 1.9% from the same month last year.
Another report showed that U.S. existing home sales increased 2.6% to 5.04 million units last month from 4.91 million in May. Analysts had expected existing home sales to rise 2% to 4.97 million units.
The broadly weaker euro slid to five month lows against the yen, with EUR/JPY down 0.29% to 136.71.
Elsewhere, the dollar pushed higher against the yen, with USD/JPY rising 0.15% to to 101.53.