Dollar Hits Lowest Since May Versus Euro

The dollar fell further versus most major currencies on Wednesday, as traders continued to digest the Federal Reserve's comments indicating a willingness to further ease monetary policy to support the economy.

European debt concerns were eased by another successful bond offering in Portugal. Borrowing costs have been high, but Spain and Ireland have also drawn strong investor demand for their public debt.
Further pressured on the dollar was exerted by news U.S. home prices continued to fall in July, and that mortgage demand fell last week for third consecutive week.
The dollar slumped to its lowest since early May versus the euro, touching $1.3439 before improving to 1.3380. The buck has dropped sharply since hitting a 4-year high of 1.1805 in June.
The buck slumped to Y84.50 versus the yen, edging back toward a recent 15-year low of 82.86. There was no sign that Japanese officials were preparing a second intervention to weaken the yen.
Canadian retail sales edged lower for a second month in row, helping the dollar stabilize versus the loonie. The buck rallied to C$1.0350 before settling near C$1.03.
Home prices fell by more than expected in the month of July, according to a report released by the Federal Housing Finance Agency on Wednesday, with the report also showing a notable revision to the drop in prices seen in June.
The FHFA said its house price index fell by 0.5 percent in July following a revised 1.2 percent drop in June. Economists had expected home prices to edge down by 0.1 percent compared to the 0.3 percent decrease originally reported for the previous month.