Dollar weakens as US consumer confidence falls

(AP) The dollar fell against most major currencies Tuesday after a private research group found that consumer confidence fell in August to the lowest level since November 2011.

Traders bought the euro after European Central Bank President Mario Draghi canceled his trip to an annual conference of central bankers in Jackson Hole, Wyo. The cancellation boosted hopes that the central bank is working on a plan to help ease Europe's debt crisis.

The euro rose to $1.2564 in late trading Tuesday from $1.2503 late Monday. The British pound rose to $1.5822 from $1.5797.

The Conference Board said its consumer confidence index fell to 60.6, down from 65.4 in July. Economists had expected a reading of 66. The results show that Americans are still worried about the economy despite a slight rise in job growth.

Meanwhile, Draghi said that he canceled his trip to Jackson Hole because of a heavy workload.

"With the cancellation of Draghi's trip to Jackson Hole, the ECB has set the market's expectations for a major policy announcement," said BK Asset Management managing director Kathy Lien, in a note to clients.

Last month, Draghi said the bank will do "whatever it takes" to save the euro, but he hasn't offered details.

The dollar fell to 78.53 Japanese yen from 78.75 yen, to 0.9559 Swiss franc from 0.9606 Swiss franc and to 98.81 Canadian cents from 99.04 Canadian cents.