The U.S. dollar shed ground against most of its major counterparts on Tuesday, extending recent losses, as demand for the safe-haven currency dropped amid easing worries about a banking crisis.
Following some recent positive developments in the banking sector and after three regional U.S. Fed bank presidents said the U.S. banking system was not facing a liquidity crisis, the dollar's safe-haven appeal has dropped.
News that First Citizens BancShares Inc. will buy all deposits and loans of Silicon Valley Bridge Bank, and the U.S. Financial Stability Oversight Council's remarks that the U.S. banking system was "sound and resilient" despite stress on some institutions, lifted sentiment in global markets.
The Fed's dovish commentary, the mild 25-basis points rate hike as well as hints that rate hikes were nearing an end, resulted in the Dollar losing ground against its major rivals over the past few sessions.
In U.S. economic news today, the Conference Board released a report showing a slight improvement in U.S. consumer confidence in the month of March.
The Conference Board said its consumer confidence index inched up to 104.2 in March from an upwardly revised 103.4 in February.
The modest increase surprised economists, who had expected the consumer confidence index to slip to 101.0 from the 102.9 originally reported for the previous month.
The dollar index, which drifted down to 102.38, is trading at 102.42, down more than 0.4% from the previous close.
Against the Euro, the dollar slipped to 1.0846 from 1.0799.
The dollar is down against Pound Sterling, dropping to 1.2343, nearly 0.5% down from the previous close.
Against the Japanese currency, the dollar weakened to 130.86 yen from 131.57 yen.
The dollar is weak against the Aussie at 0.6709 against the dollar, easing from 0.6650.
Against Swiss franc, the dollar has firmed to CHF 0.9197 from CHF 0.9156, and against the Loonie, it is weak at C$1.3599.
