The dollar fell versus the euro on Tuesday after a consumer confidence report reading came in lower-than expected raising fresh worries about the U.S economy.

A report today from the Conference Board, a private research firm, showed consumer confidence fell in March to its lowest level in five years, raising concern that the Federal Reserve will continue to cut lending rates. The board's index dropped to 64.5, from 76.4 in February.

The dollar fell to $1.5604 p.m. at 3:35 p.m. in New York compared to $1.5423 late Monday. The dollar also dropped to 100.19 yen from 100.74. The euro rose to 156.32 yen from 155.39 yen.

The dollar had gained against the euro last week after the Federal Reserve lowered its benchmark lending rate to 2.25 percent. Concerns about inflation sent commodity prices falling, with many investors placing their cash in the dollar-based assets.

Inflation