Traders are also awaiting the release of PPI, an index that measures manufacturing inflation, which is expected to increase by 0.3 percent in February. The index will be watched for any signs of inflationary pressures, as the Fed will most likely continue to increase its benchmark rate in order to stem the rise of inflation.
The US dollar was quoted at 1.3169-72 against the euro, 1.8968-73 versus the British pound and 105.13-17 against the Japanese yen at 01:45 GMT.
US Stock Market
Wall Street stocks retreated ahead of tomorrow's inflation report, which prompted speculation that any increase in inflationary pressures may force the Federal Reserve to increase its benchmark rate. An increase in interest rates will raise the cost of capital for the businesses and may curtail investment growth.
The Dow Industrials declined 64.28, or 0.6 percent, to 10,565.39, a level not seen since Feb. 1. The Standard and Poor's 500 fell 5.87, or 0.5 percent, to 1183.78 The NASDAQ Composite Index fell 0.28 at 2007.51.
Banking sector was in play as investors sold financials ahead of tomorrow's inflation report and expected interest rate increase. Citigroup, the world's largest bank, lost $1.09 to $45.76. Bank of America, the No. 3 U.S. lender, dropped 64 cents to $44.30. American International Group Inc., the world's biggest insurer, declined $1.86 to $57.90.
Ask Jeeves soared $4.43, or 18 percent, to $28.67 after the IAC/Interactive Corp agreed to buy the company for $1.96 billion in stock.
Inamed Corp. rallied $1.97 to $68.21 after the medical-device maker agreed to be acquired by Medicis Pharmaceutical Corp. for $2.8 billion in stock and cash.
L-3 Communications Holdings Inc. tumbled $4.73, or 6.3 percent, to $70.31 after the maker of defense electronics fell under criminal investigation for allegedly using defective parts in military radios.
US Index Futures and ETF's
The Standard and Poor's 500 shares, Spiders, declined 44 cents to $118.10. Nasdaq-100 tracking shares, QQQQ, rose 7 cents to $36.58.
Standard and Poor's futures for June settlement fell 4.50 to 1186.30 on the Chicago Mercantile Exchange. Nasdaq-100 Index futures slipped 2.50 to 1488.50.