The U.S. dollar traded lower against most major opponents in the European session on Wednesday as stocks advanced on earnings and strong German data.
Airline companies, Air France-KLM and Lufthansa posted profit that beat estimates.
Germany's retail sales grew at a faster-than-expected pace in September, boosting hopes that private spending will underpin economic activity in the third quarter.
Data released by the Federal Statistical Office showed that retail sales climbed 1.5 percent on a monthly basis, which was faster than both August's marginal 0.1 percent rise and expectations for a 0.3 percent growth. Sales rose for the second straight month.
U.S. stock markets will resume trading today following two-day holiday in the aftermath of Hurricane Sandy.
The greenback lost ground against the Swiss franc, hitting an 8-day low of 0.9283. This is down 0.45 percent from yesterday's close of 0.9325. The next support level for the greenback-franc pair is seen at 0.92.
Against the euro, the greenback declined 0.43 percent to a 6-day low of 1.3016, which may be compared to Tuesday's close of 1.2960. On the downside, the greenback is likely to break 1.31 level.
Inflation in Eurozone, as measured by the harmonized index of consumer prices (HICP), eased to 2.5 percent in October from 2.6 percent in September, data from Eurostat revealed.
The greenback declined to 1.6139 against the pound, its lowest level since October 26. If the greenback declines further, it is likely to break 1.62 level.
British consumer confidence declined to a six-month low in October with households turning more worried over their own financial situation over the next 12 months, a survey by GfK NOP showed today.
The consumer confidence index rose to -30 in October from -28 in September.
The greenback fell to a 5-day low of 0.9969 against the Canadian dollar. If the greenback falls further, it may target 0.99 level. The greenback-loonie pair closed deals at 0.9997 on Tuesday.
Against the Australian dollar, the greenback fell to near a 2-week low of 1.0401 with 1.045 seen as the next downside target level. At Tuesday's close, the pair was worth 1.0366.
The total number of building approvals in Australia climbed a seasonally adjusted 7.8 percent on month in September, the Australian Bureau of Statistics said, standing at 13,388.
The greenback underperformed against the NZ dollar also, falling to 0.8231. The next support level for the greenback is seen at 0.825.
Canada GDP for August and U.S. employment cost index for the third quarter are expected in the American morning session.
