The dollar slipped against its European counterparts in trading yesterday (August 18th) as economic data encouraged the view that Europe is on a faster track to recovery than the US.Speaking to Dow Jones Newswires, David Watt, senior currency strategist at RBC Capital Markets, said that consumer confidence figures from Germany and unexpectedly stable inflation figures in the UK provided support for sterling and the euro.Meanwhile, weaker housing data from the US exacerbated a further selloff on the dollar, he said, adding that it appears the greenback is also reacting differently to stock movements, indicating that it may not be as attractive as a hedge currency as it has been in recent months."Before, we had equities go straight down and the dollar getting bought, and then starting in March, a complete reversal. Now looks like we're getting into a mixed environment. We're uncertain about we're going with stocks," he commented.Meanwhile, Curtis A Mewborne, a portfolio manager with Pacific Investment Management, also predicted that the greenback will weaken against emerging market counterparts as the US pumps stimulus funds into the economy.