On Wednesday the dollar remained broadly lower against the other major currencies
as weak U.S. factory data released Tuesday dampened expectations for
higher interest rates.
The euro was underpinned by hopes for a
breakthrough on a debt deal for Greece, although the country's creditors were unimpressed by the country's new reforms proposal.
EUR/USD was last at 1.1142.
The dollar edged lower as data on Tuesday indicated
that U.S. factory orders unexpectedly fell in April.
The U.S. Commerce Department said factory orders fell 0.4% in April, confounding expectations for a 0.2% increase.
Soft numbers spurred fears over the outlook for second quarter growth.
Sentiment on the joint currency continued to be underpinned by hopes that Greece will soon reach an agreement with its international lenders which could unfreeze additional financial aid. Alexis Tsipras is now expected to meet with EU Commission chief Juncker in Brussels to discuss his government's proposal to unlock the last of its debt relief. Greece's creditors, unimpressed by Athens' plan, have drafted their own framework, says Deutsche Welle.
Friday is a deadline for Greece to make a €305 million payment to the International Monetary Fund but has warned that it will be unable to make the repayment if a deal is not reached by then.
Moreover, the euro was supported after data on Tuesday showed that euro zone consumer prices rose for the first time in six months in May. Consumer prices in the region climbed 0.3 percent year-on-year last month after a flat reading in April, surpassing market expectations of a 0.2 percent increase.
Underlying inflation, which excludes prices for energy, food and alcohol, also picked up indicating the recovery in the region is gaining traction.
