(MENAFN- FxPro) The dollar remained broadly lower against the other major currencies on Wednesday after weak U.S. factory data dampened expectations for higher interest rates, while the euro was buoyed up by hopes for a breakthrough on a debt deal for Greece.
EUR/USD was at 1.1145, holding just below the one-and-a-half week highs of 1.1193 hit on Tuesday. The pair ended that session up 2.08%.
The dollar weakened across the board after data on Tuesday showing that U.S. factory orders unexpectedly fell in April sparked fears over the outlook for second quarter growth.
The Commerce Department said factory orders fell 0.4% in April, confounding expectations for a 0.2% increase.
The unexpectedly weak data indicated that growth could struggle to pick up in the current quarter after a weak first quarter.
Demand for the single currency continued to be underpinned by hopes that Greece will soon reach an agreement with its international lenders on a cash-for-reforms deal.
Greece is due to make a ‚¬305 million payment to the International Monetary Fund on Friday but has warned that it will be unable to make the repayment if a deal is not reached by then.
The euro received an additional boost after data on Tuesday showed that euro zone consumer prices rose for the first time in six months in May.
The euro zone consumer price index rose by 0.3% from a year earlier in May, following a flat reading in April. Economists had forecast an increase of 0.2%.
Underlying inflation, which excludes prices for energy, food and alcohol, also picked up indicating the recovery in the region is gaining traction.
The euro was close to five-month highs against the yen, with EUR/JPY at 138.22, not far from Tuesday's peaks of 138.86.
USD/JPY was steady at 124.09, off Tuesday's 12-and-a-half-year highs of 125.06.
The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was at 96.11, off overnight lows of 95.69.
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