The dollar fell against most of its major counterparts as traders weighed whether weaker U.S. economic data will spur the Federal Reserve to consider a slower pace in tapering stimulus.
The British pound reached the highest since November 2009 after a report showed U.K. house prices rose the most since October 2012. The yen gained after Japan’s economic growth unexpectedly slowed. The Australian dollar touched a one-month high following data that showed record new credit last month in China, the South Pacific nation’s biggest trading partner. The Fed on Feb. 19 releases minutes of its most recent meeting.
“There’s a feeling in the market that the Fed might slow the pace of tapering, or even pause,” amid worsening U.S. economic data, said Toshiya Yamauchi, a senior analyst in Tokyo at Ueda Harlow Ltd., which provides margin-trading services. “Dollar weakness is set to continue.”