The dollar dipped on Tuesday after data on Monday showed slowing growth in the services sector and lower than expected factory orders.
A week ahead of the Federal Reserve's next monetary policy meeting, investors expressed doubts over the likely duration of the central bank's current rate-hike cycle as the economic outlook became more clouded.
ISM services index
Institute for Supply Management data showed growth in the US services sectors slowed in May, with the ISM index – the equivalent of purchasing manager indexes in Europe – slipped to 56.9 from 57.5 in April.
Analysts had forecast a dip to 57. An above 50 reading indicates economic expansion.
Indeed – economists reflected that activity in the services sector remained robust in May despite the slight slowdown.
Andrew Hunter at Capital Economics said: "Despite the small fall in the ISM index in April, it remains at a decent level by past standards and provides another reason to expect GDP growth to rebound in the second quarter."
Factory orders dip
Factory orders fell 0.2% in April after rising by 1% in the previous month, the Commerce Department reported. A poll of economists had forecast the 0.2% fall.