LONDON, Feb 26: The dollar weakened against the euro on Tuesday, dragged down by dismal US housing and consumer confidence figures that increased market expectations of a cut in US interest rates, dealers said.

The single European currency in late-day trade was at $1.4878 after $1.4828 late Monday in New York.

The dollar was meanwhile at 107.81 yen, down from 108.07 on Monday.

The euro also drew strength after the closely watched Ifo survey of German business sentiment came in above market expectations, further reinforcing expectations that the European Central Bank will not cut rates any time soon.

In Europe on Tuesday, the euro changed hands at $1.4878 against $1.4828 late on Monday, at 160.43 yen (160.28), 0.7546 pounds (0.7537) and 1.6154 Swiss francs (1.6147).

The dollar stood at 107.81 yen (108.07) and 1.0854 Swiss francs (1.0887).

The pound was at 1.9727 dollars (1.9670).—AFP