NEW YORK (AFP) - The dollar traded mostly lower Tuesday after disappointing US retail sales data sparked worries about a slowdown in consumer spending, which could hurt the overall economy.
The euro edged up to 1.3195 dollars at 2000 GMT from 1.3189 dollars late Monday in New York.
The dollar fell to 116.48 yen, from 117.63 yen late on Monday.
Data showed US retail sales rose by just 0.1 percent in February from January, well below forecasts by Wall Street analysts for a 0.3 percent increase. This prompted the euro to rise above the 1.32 dollar mark for the first time since March 3.
The report "speaks more broadly for growth expectations," said John Kicklighter at Forex Capital Markets.
"With the housing and manufacturing sectors already ailing, and business investment expected to be curbed by the uncertainty in equity markets, the consumer is the last pillar of strength for the world's largest economy."
Jordan Ebume at PNC Bank said the weak report stoked fears of a rate cut by the Federal Reserve in response to what appears to be a sluggish economy and growing fears about housing, especially in the so-called subprime market of loans to people with poor credit histories.
"With the bubble about to burst in the subprime mortgage sector and weak consumer data being reported, the likelihood of a rate cut has grown," the analyst said.
The housing fears contributed to a slump on Wall Street, with the Dow Jones Industrial Average tumbling nearly 250 points to accentuate pressure on the greenback.
Elsewhere, the yen remained supported by the unwinding of so-called carry trades, when money is borrowed in countries with low interest rates such as Japan to be invested in higher-yielding economies.
"After a brief retracement for the Japanese yen, the unwinding of the carry trade has returned," Ebume said.
In late New York trade, the dollar stood at 1.2190 Swiss francs from 1.2246 Monday.
The pound was being traded at 1.9302 dollars from 1.9325 late on Monday.
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Dollar weakens after poor US retail data
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