The dollar firmed against the majors in the New York session as better than expected US core durable orders gave support to the greenback bulls.
The US durable goods orders fell by 0.9 percent in January versus the gain of 1.1 percent in December as the orders for aircraft and automobiles declined. The core durable goods that excludes large ticket items gained 0.8 percent, printing well above estimates of 0.3 percent, as orders for capital goods increased.
A recent strong economic showing by the US economy will be retested tomorrow, as markets await the release of the US GDP numbers. US economy is expected to grow at 3.7 percent annualized during the last quarter as an increase in exports, strong construction and robust consumer spending most likely gave the world's biggest economy a boost.
The US dollar was quoted at 1.3195-98 against the euro, 1.9113-18 versus the British pound and 105.36-40 against the Japanese yen at 01:00 GMT.
Wall Street stocks gained for the second day as gains in the technology sector boosted investor's confidence despite rising crude oil prices.
The Dow Jones Industrial Average ended the day 0.7 percent higher at 10,748.79. The Standard and Poor's 500 index rose 0.8 percent to 1,200.18, and the NASDAQ Composite gained 1 percent to 2,051.70.
Internet stocks were in play as two of the biggest Internet search engines were hit by the analyst downgrades. Google fell 2.6 percent to $188.89, while Yahoo slipped 2 percent to $31.48.
Boeing, the aerospace giant rose 2.3 percent to $53.94 after the low-cost airline, Ryan Air placed a $4bn order for new jets.
Viacom, the broadcasting group, led media stocks lower. The parent company of CBS and MTV fell 2.4 percent to $35.31 after it posted a quarterly loss.
Semiconductors led the technology stocks higher, with Advanced Micro Devices, up more than 6 percent to $17.62.
The NYMEX crude oil futures contract for April delivery gained 33 cents to $51.50 per barrel after the government report revealed that the in increase in oil inventories was below expectations.
The COMEX gold futures contract for April delivery fell 40 cents to $435.70 per ounce.