The U.S. dollar fell against the euro, yen, and franc on Thursday after U.S. economic data showed weakness in business spending plans, denting expectations for a Federal Reserve interest rate increase in June or July.
The Commerce Department said orders for long-lasting U.S. manufactured goods surged 3.4 percent last month after increasing 1.9 percent in March. Economists polled by Reuters had forecast durable goods orders rising only 0.5 percent last month.
But non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, fell 0.8 percent after slipping 0.1 percent in the prior month. These so-called core capital goods orders have declined for three consecutive months.
Doubts still remain about the likelihood of a June or July Fed rate increase, said Boris Schlossberg, managing director at BK Asset Management in New York.