Investing.com - The dollar extended losses against the other major currencies on Tuesday, after the release of disappointing U.S. data on durable goods ordres and as investors remained cautious ahead of the Federal Reserve’s policy statement on Wednesday.
USD/JPY slipped 0.22% to 110.95.
The U.S. Commerce Department said that total durable goods orders rose 0.8% last month, compared to expectations for a increase of 1.8%. February's orders were revised down to a decrease of 3.1% from a previously reported 3.0% decline.
Core durable goods orders, which exclude volatile transportation items, slipped 0.2% last month, compared to forecasts for a 0.5% increase. February's core durable goods orders had shown a 1.3% decline.
Sentiment on the greenback was vulnerable as traders awaited the Fed’s upcoming policy meeting, due to conclude on Wednesday for hints on the pace and timing of future rate hikes.
The Bank of Japan is to wrap up its two-day policy meeting on Thursday and in recent daysexpectations for more easing have mounted.
The yen fell 2.1% against the dollar on Friday after Bloomberg reported that the BoJ could expand the negative interest rate policy it put in place in January at the conclusion of its rate review.
EUR/USD gained 0.36% to trade at 1.1309.
The dollar was lower against the pound and the Swiss franc, with GBP/USD up 0.77% at a nearly three-month high of 1.4593 and with USD/CHF slidin 0.30% to 0.9722.
The pound strengthened as investors seemed to forget their concerns over a British exit from the European Union, or Brexit.
The Australian and New Zealand dollars remained stronger, with AUD/USD up 0.40% at 0.7746 and with NZD/USD climbing 0.51% to 0.6891.
Elsewhere, USD/CAD fell 0.34% to 1.2632, hovering close to last week’s nine-month trough of 1.2589.
The commodity currencies were boosted as oil prices bounced back on Tuesday thanks to a weaker U.S. dollar, but gains were expected to remain limited as Saudi Arabia, Iran and Koweit all announced output increases, adding to concerns over a global supply glut.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.46% at 94.31, the lowest since April 21.