Investing.com - The dollar softened against most major currencies on Wednesday as a government shutdown continued to fuel concerns the fiscal impasse could hamper U.S. recovery.
Hit-and-miss U.S. economic indicators weakened the currency as well.
In U.S. trading on Wednesday, EUR/USD was up 0.29% at 1.3619.
The Institute of Supply Management reported earlier that its non-manufacturing purchasing manager's index fell to a three-month low of 54.4 in September from 58.6 in August.
Analysts were expecting the index to decline to 57.4 last month.
Separately, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending Sept. 28 rose by 1,000 to a seasonally adjusted 308,000, better than analysts' calls for jobless claims to rise by 6,000 to 313,000 last week.
Jobless claims for the preceding week were revised up to a gain of 307,000 from a previously reported increase of 305,000.
An ongoing U.S. government shutdown continued to dampen demand for the greenback.
President Barack Obama met with Republican and Democratic leaders in Congress on Wednesday, although a solution still seemed unlikely.
Markets were also considering how the political deadlock will affect negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by Oct. 17.
Meanwhile in the euro zone, retail sales rose 0.7% in August, beating expectations for a 0.2% gain, after an upwardly revised 0.5% increase the previous month, according to official data.
Separately, the Markit research group said its final reading for the euro zone services purchasing managers' index rose to 52.2 in September from 52.1 in August.
Analysts were expecting the index to remain unchanged last month.
Germany's service-sector PMI declined to 53.7 last month from 54.4 in August, compared to expectations for the index to remain unchanged.
Elsewhere, the greenback was up against the pound, with GBP/USD down 0.41% at 1.6158.
In the U.K. earlier, the Markit research firm said its services purchasing manager's index ticked down to 60.3 in September from 60.5 in August, better than expectations for a decline to 60.0.
A separate report showed that house price inflation in the U.K. rose 0.3% last month, confounding expectations for a 0.5% increase after a downwardly revised 0.3% uptick in August.
The tame data sparked a round of profit-taking, as investors viewed the pound as due for a breather, especially after hitting recent nine-month highs against the greenback.
The dollar was down against the yen, with USD/JPY down 0.08% at 97.28, and down against the Swiss franc, with USD/CHF down 0.34%at 0.8998.
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.14% at 1.0323, AUD/USD up 0.17% at 0.9402 and NZD/USD trading down 0.44% at 0.8294.
China's non-manufacturing PMI climbed to a six-month high of 55.4 in September from 53.9 in August, according to official data, which supported the three export-sensitive currencies.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.16% at 79.87.
Hit-and-miss U.S. economic indicators weakened the currency as well.
In U.S. trading on Wednesday, EUR/USD was up 0.29% at 1.3619.
The Institute of Supply Management reported earlier that its non-manufacturing purchasing manager's index fell to a three-month low of 54.4 in September from 58.6 in August.
Analysts were expecting the index to decline to 57.4 last month.
Separately, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending Sept. 28 rose by 1,000 to a seasonally adjusted 308,000, better than analysts' calls for jobless claims to rise by 6,000 to 313,000 last week.
Jobless claims for the preceding week were revised up to a gain of 307,000 from a previously reported increase of 305,000.
An ongoing U.S. government shutdown continued to dampen demand for the greenback.
President Barack Obama met with Republican and Democratic leaders in Congress on Wednesday, although a solution still seemed unlikely.
Markets were also considering how the political deadlock will affect negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by Oct. 17.
Meanwhile in the euro zone, retail sales rose 0.7% in August, beating expectations for a 0.2% gain, after an upwardly revised 0.5% increase the previous month, according to official data.
Separately, the Markit research group said its final reading for the euro zone services purchasing managers' index rose to 52.2 in September from 52.1 in August.
Analysts were expecting the index to remain unchanged last month.
Germany's service-sector PMI declined to 53.7 last month from 54.4 in August, compared to expectations for the index to remain unchanged.
Elsewhere, the greenback was up against the pound, with GBP/USD down 0.41% at 1.6158.
In the U.K. earlier, the Markit research firm said its services purchasing manager's index ticked down to 60.3 in September from 60.5 in August, better than expectations for a decline to 60.0.
A separate report showed that house price inflation in the U.K. rose 0.3% last month, confounding expectations for a 0.5% increase after a downwardly revised 0.3% uptick in August.
The tame data sparked a round of profit-taking, as investors viewed the pound as due for a breather, especially after hitting recent nine-month highs against the greenback.
The dollar was down against the yen, with USD/JPY down 0.08% at 97.28, and down against the Swiss franc, with USD/CHF down 0.34%at 0.8998.
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.14% at 1.0323, AUD/USD up 0.17% at 0.9402 and NZD/USD trading down 0.44% at 0.8294.
China's non-manufacturing PMI climbed to a six-month high of 55.4 in September from 53.9 in August, according to official data, which supported the three export-sensitive currencies.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.16% at 79.87.