The U.S. dollar hit a more than three-month low against a basket of major currencies on Wednesday after weaker-than-expected U.S. retail sales data for April supported expectations that the Federal Reserve would wait longer before hiking rates.
U.S. retail sales were unchanged in April as households cut back on purchases of automobiles and other big-ticket items. The data suggested the economy was struggling to make a strong rebound after barely growing in the first quarter.
In addition to the retail sales report, other data showed the 10th straight month of declining import prices in April.
"The market is basically convinced that the Fed is not going to do anything until the consumer shows some strength," said Boris Schlossberg, managing director of FX strategy at BK Asset Management in New York.