The U.S. dollar fell against the euro and commodity currencies on Tuesday on expectations for a dovish Federal Reserve statement and greater risk appetite, while the greenback gained against the yen on expectations for increased Bank of Japan stimulus.
The euro was last up 0.24 percent against the dollar at $1.1290 after U.S. March durable goods orders and April consumer confidence data came in below the expectations of economists polled by Reuters, reinforcing views that weak economic data would lead the Fed to strike a dovish tone in a policy statement on Wednesday.
"Most U.S. data is coming in soft," said Win Thin, global head of emerging market currency strategy at Brown Brothers Harriman in New York. "It's going to be harder for the dollar to get some traction until Fed tightening comes back on the radar."
Fed fund futures contracts on Tuesday suggested traders were pricing in no chance that the Fed would hike interest rates again this month, according to CME Group's FedWatch program.