The dollar climbed to a nearly two-year high against the euro on Thursday as optimistic U.S. data boosted demand for the dollar and traders waited for Friday's U.S. first quarter GDP data to be released.
EUR = fell 0.18% to $1.1132, the lowest since May 2017.
"Overall, the dollar benefits from strong domestic data, weak overseas data and a series of pigeon central bank meetings," said John Doyle, vice president of trading at Tempus Inc.
Data released on Thursday showed that new orders for core capital goods produced in March in the United States grew the most in eight months, with orders reaching record highs, brightening manufacturing and economic prospects.
Analysts said other data released earlier in the United States showed strong retail sales and exports, alleviating fears of a sharp slowdown in the U.S. economy.
"Strong growth in core capital orders in March, coupled with stronger retail sales last month, implies stronger momentum for the economy into the second quarter," Michael Pearce, senior U.S. analyst at Capital Economics, said in a report.
Meanwhile, worries about the quality of the euro zone's economies have been plaguing the euro.
"Many people think that the Fed's policy adjustment at the beginning of this year will weaken the dollar, but the fact is that U.S. interest rates are still more attractive than other economies," said Tempus's Doyle.
Earlier this year, the Federal Reserve (Federal Reserve/FED) hinted that interest rates would not be raised this year, as economic growth slowed down.
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