The European single currency saw choppy trading action Wednesday, slipping but then quickly rebounding after a closely-watched gauge of German business sentiment fell to another historic low.
The business-climate index produced by the Munich-based Ifo Institute fell to 82.1 from a reading of 82.6 in February. Expectations were for a reading of 82.2. See full story.
The euro posted a muted reaction to the data. It slipped slightly following the data, but soon regained its footing to set a new high versus the dollar for the day at $1.3529, according to FactSet Research. In recent action, the single currency changed hands at $1.3485, up slightly from $1.3464 in North American trade late Tuesday.
The dollar lost ground versus the Japanese currency to trade recently at 97.69 yen, down slightly from 97.77 yen late Tuesday.
"The dollar is consolidating its recent gains against the yen and is well within yesterday's ranges. The currency market paid little heed to Japan's unexpected trade surplus and a slightly softer than expected German Ifo report," wrote strategists at Brown Brothers Harriman.
The dollar index , a measure of the greenback against a trade-weighted basket of six major currencies, traded at 83.954, down from 84.120 late Tuesday.
The Czech koruna was on the defensive, extending losses after the Czech Republic's coalition government lost a no-confidence vote Wednesday.
The koruna fell 0.8% versus the dollar to trade at 20.25 per dollar. The koruna slipped 1.8% versus the single currency to change hands at 27.338 per euro.
The British pound slipped after the Confederation of British Industry said sales volume at U.K. retailers fell more than expected in March.
The CBI's retail sales balance index fell to -44 from -25 in February. The balance reflects the difference between the percentage of retailers reporting increased sales and those reporting lower sales.
Economists had forecast a fall to -35.
The British pound traded at $1.4580, down from $1.4678 on Tuesday.
