17 August 2004, 10:47  Dollar awaits ZEW, US inflation data

The dollar held steady against major currencies in thin August trade on Tuesday with investors awaiting German investor confidence data and U.S. consumer inflation numbers to give direction. German ZEW index, due at 0900 GMT, is expected to fall to 47.5 in August from 48.4 in July. Investors are also watching the U.S. July consumer index due at 1230 GMT for clues on how much more U.S interest rates need to rise to counter inflation. By 0636 GMT the dollar stood at $1.2356 , unchanged on the day but within half a cent of Monday's four-week lows. The greenback fell across the board on Monday, extending losses made on Friday after data showed a record U.S. current account deficit, reminding investors of the country's structural problems. But it recovered somewhat later on Monday after data showed the United States had higher-than-expected net capital inflows of $71.8 billion in June. Against the yen the greenback was also steady at 110.42 yen . Industry production data from the euro zone and the United States are also due later.///www.reuters.com

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