On Wednesday, the dollar continues the decline against the basket of major currencies after the publication of disappointing US industrial data, which weakened hopes for a rise in interest rates, while the demand for the euro is supported by hopes for a breakthrough in negotiations on the debt of Greece.
The EUR/USD is at 1.1145, just below the 1.5-week high of 1.1193 reached Tuesday. The pair closed the last session with a 2.08% rise.
The dollar weakened in all directions after data on Tuesday showed that US factory orders unexpectedly fell in April, raising fears about the prospects for growth in the second quarter.
The Commerce Department reported that factory orders fell in April by 0.4%, confounding the expected 0.2% gain.
Unexpectedly weak data boosted concerns about the prospects for economic recovery in the second quarter after a weak growth in the first quarter.
The hopes that Greece will soon reach an agreement with its international creditors to get financial help for reforms raised the demand for the euro.
On Friday, Greece is obliged to pay 305 million euro to the International Monetary Fund, but the last month it warned that it would be unable to make payments in the event that an agreement on reforms is not reached by then.
The single currency found support after data that indicated the growth of consumer prices of the euro area in May for the first time in six months.
Eurozone consumer price index rose in May by 0.3% in annual terms, after no change in April. Economists had forecast a rise of 0.2%.
Core inflation, which excludes prices of energy, food and alcohol, has also increased, suggesting that the recovery in the region is gaining momentum.
Euro is close to a five-month high against the yen, with EUR/JPY being at 138.22, not far from the peak of 138.86 on Tuesday.
The pair USD/JPY is stable at 124.09, being traded near 12.5-year high of 125.06 on Tuesday.
The USD index, which measures the American currency against the basket of six major currencies, is traded at 96.11, near the session low of 95.69.