Dollar keeps falling against major currencies

U.S. dollar continued its downward trend against major currencies Tuesday amid low trading volumes. Disappointing U.S. economic data released Tuesday exerted pressure on the dollar and heightened market speculations that the Federal Reserve may not taper the bond-purchasing program soon. U.S. manufacturing activity in the central Atlantic region declined in July, according to the most recent survey by the Federal Reserve Bank of Richmond. However, looking six months ahead, manufacturers were optimistic about business. U.S. house price appreciation continued in May, rising 0.7 percent on a seasonally adjusted basis from the previous month, marking the 16th consecutive monthly price increase, but still under market expectations. Japan's ruling camp, the Liberal Democratic Party and its coalition the New Komeito Party, won majority seats in the upper house election on Sunday, paving the way for Prime Minister Shinzo Abe to launch more stimulus economic policies. Analysts said investors had sold the yen before the election and the yen strengthened as they took profits from the positions in the past two sessions, but it will stay weak against the dollar in the long term. In late New York trading, the euro rose to 1.3234 dollars from 1.3190 dollars of the previous session and the British pound increased to 1.5391 dollars from 1.5357. The Australian dollar climbed to 0.9296 dollars from 0.9244. The dollar bought 99.44 Japanese yen, lower than 99.58 yen of the previous session. It edged down to 0.9345 Swiss francs from 0. 9362 and moved down to 1.0281 Canadian dollars from 1.0341.