The US dollar fell against the majors in New York as trades pushed the greenback lower following the release of the mixed US economic data.
The US Current Account deficit widened to $187.9 billion during the last quarter of 2004, the highest shortfall on a record. Currently US deficits amounts to 5.7 percent of the GDP, emphasizing the reliance of Americans on international investors to fund the widening gap. Dismal US Current Account data overshadowed more positive US economic data. The US industrial production rose by 0.3 percent in February as manufacturers produced more durable goods to fill rising consumer demand and to replenish falling inventories. In addition US housing starts unexpectedly rose in February by 0.5 percent to 2.195 million, the fastest rate in over 20 years as starts in Midwest rose by more than 20 percent, the fastest growth rate since 2003.
The US dollar was quoted at 1.3407-10 against the euro, 1.9255-60 versus the pound and 104.32-36 against the Japanese yen at 02:00 GMT.
Wall Street retreated after General Motors Corp., the world's biggest automaker, announced it will sustain the largest quarterly loss since 1992 and oil prices marked another all time high.
The Dow Jones Industrial Average lost 112.03, or 1 percent, to 10,633.07 and the Standard and Poor's 500 Index fell 9.68, or 0.8 percent, to 1188.07. The NASDAQ Composite Index dropped 19.23, or 0.9 percent, to 2015.75.
GM fell $4.71 to $29.01 on pre-announcing a quarterly loss, as the automaker continues to lose market share to the Japanese automakers.
The rest of the automotive sector felt the brunt of the announcement as investors' dumped shares. Delphi, the world's largest auto-parts maker, fell 27 cents to $4.67, while rival Visteon Corp. dropped 29 cents to $6.27. Goodyear Tire and Rubber Co., declined 46 cents to $14.04. Ford Motor Co declined 32 cents, or 2.6 percent, to $11.91. DaimlerChrysler, the world's largest maker of luxury vehicles, slid 91 cents to $45.20.
Research In Motion Ltd., the maker of the BlackBerry e-mail pager, rallied $11.87 to $78.96 after the company agreed to pay $450 million to end a patent dispute.
Standard and Poor's 500 Index futures for June expiration fell 10.70 to 1192 on the Chicago Mercantile Exchange. Nasdaq-100 Index futures retreated 18.50 to 1495.50. Nasdaq-100 tracking shares, QQQQ, declined 43 cents to $36.62.