The US dollar eased from a seven-week high on Monday as investors weighed last week's strong US economic data and the outlook for global interest rates.
Data on Friday showed U.S. consumer spending. rebounded sharply in January, while inflation increased.
Currency traders now expect the Fed to raise interest rates to around 5.4% by summer. In early February, they expected rates to rise to a record high of just 4.9%.
On the other hand, data today showed new orders for US manufactured capital goods rose more than expected in January while goods shipments also rebounded, suggesting that business spending on equipment increased at the start of the first quarter.
Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, rose 0.8% last month, the Commerce Department reported on Monday. Orders for these core capital goods fell 0.3% in December.
The US dollar index which measures the greenback against six major currencies,
has recorded a decrease to the trading level of 104.770 with a decrease of 0.36%.
The euro firmed 0.38% to trade at 1.0587 against the US dollar.
Simon Harvey, chief FX strategist at Monex Europe, said a slight improvement in investor sentiment on Monday, with global stocks rising, would weigh on the US dollar.
The dollar was last down 0.22% against the Japanese yen at 136.21 yen, reversing some of its gains after hitting a more than two-month high of 136.58 earlier in the session.
