The dollar remained lower against the euro in Forex Trading Online after U.S. housing starts dropped more than forecast in December, increasing concern the U.S. economic recovery will remain sluggish.
The U.S. currency weakened against 13 of its 16 most-traded counterparts as housing starts declined 4.3 percent to a 529,000 annual rate last month, according to a Commerce Department report. Economists in a Bloomberg survey had estimated a 0.9 percent drop to a 550,000 annual pace.
The dollar dropped 1 percent to $1.3525 per euro as of 8:38 a.m. in New York, the weakest since Nov. 23, from $1.3387 yesterday. The U.S. currency declined 0.6 percent to 82.04 yen, from 82.56.
IntercontinentalExchange Inc.’s Dollar Index, which tracks the greenback against the currencies of six major U.S. trading partners, dropped 0.8 percent to 78.353, the lowest since Nov. 22.
European stocks slid, dragging the benchmark Stoxx Europe 600 Index down from its highest level since September 2008, before a report that may show the U.S. construction industry started work on fewer homes last month. U.S. futures were little changed, while Asian shares advanced.
The Stoxx Europe 600 Index slid 0.3 percent to 285.74 at 12:32 p.m. in London. Standard & Poor’s 500 Index futures retreated less than 0.1 percent, while the MSCI Asia Pacific Index rallied 1.1 percent.