Investing.com - The euro fell to two-week lows against the broadly stronger dollar on Wednesday after surprisingly strong data on U.S. new home sales eased concerns over a slowdown in the housing market.
EUR/USD hit 1.3669, the weakest since February 13 and was last down 0.47% to 1.3678.
The pair was likely to find support at 1.3640 and resistance at 1.3756, the session high.
The Commerce Department reported that new home sales rose 9.6% to 468,000 units in January, the largest increase in five-and-a-half years. Analysts had expected new home sales to fall 1% to 400,000.
New home sales in December were revised up to 427,000 units from a previously reported 414,000 units.
Investors were looking ahead to testimony by Federal Reserve Chair Janet Yellen on Thursday after a recent spate of disappointing U.S. economic indicators raised some doubts over whether the central bank will maintain the current pace of reductions to its stimulus program.
Ms. Yellen was expected to reiterate that the U.S. central bank would continue to roll back its asset purchase program, as long as the economy improves as expected.
The euro extended losses against the yen, with EUR/JPY down 0.54% to 139.76, the lowest level since February 20.
The euro shrugged off a report showing that Germany’s forward looking Gfk consumer sentiment index ticked up to a seven-year high of 8.5 for March from 8.3 in February, indicating that the recovery in the euro area’s largest economy is deepening.
Elsewhere, the dollar was almost unchanged against the yen, with USD/JPY inching up 0.01% to 102.25, holding above Tuesday’s lows of 101.99.
Demand for the safe have yen continued to be underpinned amid concerns over the outlook for emerging markets. Russia’s rouble fell to a five year low against the dollar, on Wednesday, driven lower by heightened political tensions in Ukraine.
Meanwhile China’s yuan was steady after falling to three-year lows against the dollar on Tuesday, amid speculation that the country’s central bank has intervened to add volatility to the currency ahead of possible economic reforms.