The dollar posted moderate losses against the euro and yen on Tuesday as figures showing a surprise drop in U.S. retail sales in June dented optimism about U.S. economic growth and clouded prospects for a September rate hike by the Federal Reserve.
U.S. retail sales slipped 0.3 percent last month, the weakest reading since February, as consumers cut back on purchases of automobiles and other goods, according to a Commerce Department report. Excluding automobiles, gasoline, building materials and food services, core retail sales dipped 0.1 percent following a 0.7 percent gain in May.
Economists polled by Reuters had forecast retail sales rising 0.2 percent. Core retail sales had been expected to increase 0.4 percent.
Coming after a disappointing employment report for June and a sharp drop in small business confidence, the weak retail sales data suggested the U.S. economy may have lost some momentum at the end of the second quarter after struggling in early 2015.