Investing.com - The dollar remained broadly lower against a basket of other major currencies on Wednesday, after data showed that U.S. durable goods orders fell unexpectedly in February, fuelling fresh uncertainty over the strength of the economy.
In a report, the U.S. Commerce Department said that total durable goods orders, which include transportation items, declined 1.4% last month, compared to expectations for a gain of 0.4%. Orders for durable goods in January were revised down to a 2.0% gain from a previously reported increase of 2.8%.
Core durable goods orders, excluding volatile transportation items, inched down 0.4% in February, disappointing forecasts for a 0.3% gain. Core durable goods orders were flat in January, whose figure was revised from previously reported gain of 0.3%.
The report came a day after data showing an uptick in underlying U.S. inflation fuelled speculation that the Federal Reserve would still have leeway to tighten monetary policy even with inflation running below target.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.34% to 97.10.
EUR/USD climbed 0.70% to 1.1002, off lows of 1.0901 hit earlier in the session.
The euro strengthened after data showed that German business confidence improved this month, boosting the outlook for the euro area’s largest economy.
The Ifo Institute said its business climate index rose to 107.9 this month, up from 106.8 in February. Economists expected a reading of 107.3.
The pound was also higher, with GBP/USD up 0.56% to 1.4931.
The British Banker's Association earlier reported that the number of new U.K. mortgages approved increased to a five-month high of 37,300 last month from January’s total of 36,400. Analysts had expected the number of new mortgages approved to rise to 36,900 in February.
Elsewhere, the dollar remained lower against the yen and the Swiss franc, with USD/JPY shedding 0.39% to 119.28 and with USD/CHF slipping 0.15% to 0.9567.
The Australian, New Zealand and Canadian dollars were broadly stronger, with AUD/USD rising 0.23% to 0.7897 and NZD/USD gaining 0.36% to 0.7681, while USD/CAD edged down 0.10% to trade at 1.2481.