The dollar struck a two-week low against the euro today, with an economic report from the Federal Reserve continuing to dominate trading despite solid US industrial news.
The euro spiked as high as $1.2746 in early European trading. It stood at $1.2722 this evening, compared with $1.2713 last night in New York.
The US Commerce Department reported that an 8.8% rebound in new orders for civilian aircraft and parts helped durable goods orders rise by 3.1% in June, nearly twice as much as expected and the fastest pace since March.
Though the data helped the dollar enjoy a brief rally, it soon succumbed to further selling pressure, with the euro climbing on the reduced possibility of another interest rate hike by the Federal Reserve.
The dollar had been soft all day after the Fed's Beige Book report into the US economy fuelled speculation that the central bank would not raise interest rates again in August.
In its Beige Book, the Fed, which has increased its key Fed funds rate a quarter point on 17 consecutive occasions to 5.25%, said growth in the US was moderating while wage pressures remained benign.
Following the publication, the market reined back expectations of another rate hike at the August 8 meeting of the rate-setting Federal Open Market Committee.
The next key release in the US is tomorrow's second-quarter growth report, with Wall Street anticipating a slowdown in the annualised rate to 3.1% from the heady 5.6% recorded in the first quarter.
