The dollar tumbled against the yen and Swiss franc for the second consecutive day this afternoon.
Unlike yesterday's strength in currencies with low interest rates and broad weakness in the dollar, Tuesday's price action was encouraged by weaker-than-expected economic data as well as falling Treasury debt yields.
Retail sales grew in February, the US government said, but did not rise as much as economists had forecast.
The dollar was down 0.8 per cent at 116.73 yen, more than one yen away from a three-month low plumbed a week ago during a shakeout in carry trades, in which investors borrow in cheap currencies such as the yen to buy higher-yielding assets or currencies.
Against the Swiss franc, the dollar fell 0.5 per cent to 1.2184 francs. The euro climbed 0.2 per cent to around $1.3217, helped slightly by an unexpectedly strong ZEW survey on investor confidence in Germany.
The euro was down 0.6 per cent at 154.30 yen.