The dollar fell across the board in New York as traders sold the greenback ahead of the key US economic data. The markets are awaiting the release of the Treasury International Capital flows (TICS) data to gauge the willingness of international investors to finance the US's ballooning twin deficits that are currently weighing on the dollar. The retail sales are expected to decline in January, as it is a historically slow month for retailers after the year-end holiday season.
The US dollar was quoted at 1.2967-70 against the euro, versus1.8863-1.8868 the British pound and 105.19-23 the Japanese yen at 01:00 GMT.
Wall Street stocks were unchanged today as investors remained on the sidelines despite the news of merger and acquisition activity.
The Dow Jones Industrial Average was down less than 0.1 percent at 10,791.13, while the Standard and Poor's 500 was up 0.1 percent at 1,206.14. The NASDAQ Composite index was 0.3 percent higher at 2,082.91.
The telecommunications sector was in play as MCI accepted the $6.6bn bid from Verizon Communications. Verizon lost 0.3 percent to $36.19 while MCI tumbled 4 percent to $19.93.
Blockbuster lost 1.1 percent to $9.30 while Hollywood Video gave up 1.5 percent to $14.13 after the regulators questioned the Hollywood hostile bid for the rival. American International Group, the insurer, dropped 2.2 percent to $71.49 after the company said it received new subpoenas from the Securities and Exchange Commission and Eliot Spitzer, the New York state attorney general.
Encysive Pharmaceuticals shares rallied 12.3 percent to $11.80 after the company announced successful clinical trial of its new drug.
Motorola stock gained 1.8 percent to $16.20 after it announced a new sales strategy for emerging markets.
The NYMEX crude oil futures contract for March delivery gained 28 cents to $47.44 per barrel on the news that OPEC might cut production the in second quarter of 2005.
COMEX gold futures contract for April delivery rallied $5.50 to $427.50 per ounce after the dollar posted a sharp decline against the majors.
The US treasuries continued to rally on speculation that the Fed rate hikes will contain inflation. The 10 Year Treasury note gained 1/8 to 99 13/32 pushing the yield lower by 2 basis points to 3.98 percent.