The dollar fell to a two-month low against the euro after data showing US durable goods orders fell by far more than expected in January, adding to worries about the health of the economy.
The dollar was already under pressure ahead of the data, as worries about increasing defaults among high-risk borrowers in US subprime mortgages, a plunge in Chinese stock prices, and tensions in Iran have all prompted investors to take some risk off the table.
The euro climbed to $1.3245 against the dollar late this evening, up around 0.4% from yesterday.
Orders for manufactured US durable goods sank 7.8% in January, as orders for transportation equipment fell heavily, official figures showed.
The Commerce Department data showed that the fall in orders was the sharpest since October 2006, and was more than double what most Wall Street analysts had forecast.
December's durable goods orders were revised a shade lower to a 2.8% rise from a prior estimate of 2.9%.
Excluding the transport sector, orders fell 3.1% in January following a spike of 2.6% in December.
And orders fell 7.8% excluding the defence sector, marking the segment's biggest drop ever, after notching up a 4% gain in December.
A separate report today showed that US consumers' confidence improved more than expected in February on a more favorable view of the labor market.
The Conference Board said its index of consumer sentiment edged up to 112.5 in February, from January's slightly downwardly revised 110.2.
Economists on average had forecast a February reading of 108.9.
Other data out today showed that US existing home sales posted their largest gain in two years last month, a sign the US housing market may be climbing out of a slump.
US home sales rose 3% in January to a better-than-expected annual pace of 6.46 million units, the highest level in seven months, the National Association of Realtors (NAR) said.
Most economists had been expecting the report to show a weaker gain in existing home sales.
