Investing.com - The euro was at one month lows against the broadly stronger dollar on Tuesday after data showing that U.S. core durable goods orders rose for the second straight month in April boosting the economic outlook.
EUR/USD hit lows of 1.0885, the weakest level since April 28 and was last at 1.0907, down 0.64% for the day.
The Commerce Department reported that orders for long lasting manufactured goods fell 0.5% in April, but the previous month’s figure was revised up to a gain of 5.1% from 4.7%.
Core durable goods orders, which exclude transportations items, rose 0.5%, ahead of expectations for a rise of 0.4%, after a 0.6% increase in March.
Orders for nondefense capital goods excluding aircraft, a key measure of business investment jumped 1.0% from a month earlier, easily outstripping forecasts for an increase of 0.3%.
The data underlined expectations for higher interest rates later this year.
The greenback has strengthened across the board since Fed Chair Janet Yellen reiterated Friday that the bank still expects to start raising interest rates later this year if the economy continues to improve as expected.
The euro remained under heavy selling pressure as the prospect of a Greek default continued to weigh.
Athens has warned that the country would be unable to make a €305 million payment to the International Monetary Fund due on June 5 if a cash-for-reforms deal with its international lenders is not reached by then.
Talks between Greece and its creditors which were due to be held in Brussels on Tuesday were postponed, adding to fears that an agreement is still not close.
The euro gained ground against the weaker yen, with EUR/JPY up 0.62% to 134.25, off one-month lows of 133.09 struck overnight.
Meanwhile, the dollar jumped to fresh eight-year highs against the yen following the upbeat U.S. data, with USD/JPY advancing 1.3% to 123.13.
The greenback also extended gains against the other major currencies, with the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, up 0.77% to five-week highs of 97.21.