The Dollar fell against the Euro on Tuesday as US housing starts plunged to their lowest level in more than 17 years in May, casting more doubt over an anticipated early Federal Reserve interest rate increase.
Euro zone interest rate expectations were also trimmed after the European Central Bank's Smaghi indicated a single hike would be sufficient to bring back inflation below the bank's 2% target.
Analysts remain convinced that the Fed will raise interest rates by year-end, citing an unexpected 1.4% rise in the headline producer price index in May, which pointed to growing inflation pressures already highlighted by the central bank.
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