Dollar weakens after US durable goods unexpectedly fall

Orders for US durable goods unexpectedly declined a seasonally adjusted 1.4 percent in February from a month earlier. Factors that likely played a role in the weak number were severe winter weather, a strengthening dollar and a plunge in oil prices.

February’s decline comes after a 2 percent gain in January that was smaller than previously estimated, according to data from the Commerce Department released on Wednesday. Most analysts estimated durable goods orders would rise 0.2 percent.

Orders for durable goods include products that are designed to last at least three years such as computers, lawn mowers and washing machines.

The weak performance suggests US companies remain cautious about spending amid weak global demand and a stronger greenback, as American goods become more expensive to businesses abroad. The fall in crude prices that began last year probably will cause mining and oil companies to keep curbing purchases of new equipment.

After the data was released, US equities fell, sending the Nasdaq Composite Index down the most in 11 months, losing 2.4 percent, while the Standard & Poor’s 500 Index declined 1.5 percent to 2,061.05. USD/JPY fell to a low of 118.93.

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