The dollar was lower against the euro today with investors prepared to take on more risk, but poor US data capped losses with some investors preferring the safer haven of the US currency.
Though the data was evidence of how poorly the US economy is faring, investors believe with a proactive administration, the United States is more likely to recover than other parts of the world.
"The weak reports reinforce the view that problems in the US economy are more significant than what had been priced in the market and that's why we're seeing some bids in the dollar," said Matthew Strauss, senior currency strategist at RBC Capital Markets in Toronto. "For now, that should cap risk appetite in the market."
The dollar pared losses against the euro after data showed orders for US durable goods fell for a sixth consecutive month to a six-year low in January, adding to concerns about a deepening US recession.
A separate report showed the number of US workers continuing to claim jobless benefits notched a fresh record in the second week of February, while new claims for aid were at the highest level since 1982.
The euro was last up 0.6 per cent at $1.277 and was trading at 88 pence sterling at 2.05pm Irish time.
Bloomberg