LONDON (AFP) - The dollar shrugged off evidence of diminishing consumer confidence levels in the US to stay little changed against the euro and pound, as market focus stayed fixed on soaring oil prices.
The Conference Board's survey of US consumer confidence came in at a weaker than expected 96.8 in September - the lowest level since May.
Bank of New York economists Michael Woolfolk pointed out that the dollar's reaction to the report was only "mildly negative."
The pound was trading Tuesday afternoon at 1.8122 against the greenback, down from 1.8143 before the report was published.
Analysts pointed out that sentiment was restrained by concerns over a lacklustre job market, rising oil prices and falling stock prices.
"Until these factors begin to show some consistent improvement, consumer confidence may very well continue falling and with it consumer demand and economic growth prospects," said Woolfolk.
But markets were too pre-occupied with resurgent oil prices to take much notice of the weak US data.
"For now, it appears that the dollar will remain within its well-worn range," said Woolfolk.