Investing.com - The dollar fell to six-month lows against a basket of the other major currencies on Tuesday as fresh concerns over the Trump administration and a slate of weak U.S. housing data weighed.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.62% at 98.19, the lowest trough since November 9.
The greenback weakened across the board following reports that U.S. President Donald Trump shared sensitive intelligence obtained from a close U.S. ally with Russia's foreign minister about an Islamic State operation in a meeting last week.
The report came as Trump's administration reels over his decision to sack former FBI Director James Comey and amid congressional calls for an independent investigation of possible Russian interference with the U.S. election.
The report underlined doubts over Trump’s ability to successfully push through his economic stimulus program.
The dollar came under additional selling pressure after data showing that U.S. housing starts slowed unexpectedly in April pointed to a slowdown the housing market recovery.
Housing starts fell by 2.6% to a seasonally adjusted annual rate of 1.17 million units, the Commerce Department said. It was the lowest since November and added to a recent run of disappointing U.S. economic data. Building permits fell by 2.5% the report said.
The report added to a recent run of disappointing U.S. economic data after a report on Monday showed that factory activity New York State weakened this month, as companies reported a drop in new orders.
Another report showed that U.S. industrial production rose 1.0% in April, well above expectations for a 0.4% increase.
The euro rose to seven-month peaks with EUR/USD last up 0.86% at 1.1068.
Demand for the euro continued to be underpinned as investors shifted their attention back to the outlook for monetary policy as concerns over political risks receded after centrist Emmanuel Macron was elected France's president over far-right nationalist Marine Le Pen.
Data on Tuesday confirmed that the euro area economy grew by 0.5% in the first quarter, fueling speculation over how soon the European Central Bank could scale back its stimulus program.
Another report showed that Germany economic sentiment continued to improve in May, hitting its highest since July 2015.
Against the yen, the dollar was lower, with USD/JPY down 0.6% to 113.11.
The pound was a touch higher against the weaker dollar, with GBP/USD at 1.2911.
Earlier Tuesday, sterling touched session highs of 1.2957 after data showing that UK inflation rose to its highest since September 2013 last month, underlining concerns over a squeeze on consumer spending.
The pound was pressured lower by weakness against the stronger euro, with EUR/GBP rising 0.79% to a one-and-a-half month high of 0.8575.