The dollar declined against a basket of currencies on Wednesday after the release of weaker-than-expected U.S. economic data. The data fueled concerns about a potential slowdown in economic growth.

The U.S. currency reacted negatively to the news, as investors began to scale back expectations for further interest rate increases by the Federal Reserve. The prospect of lower interest rates makes the dollar less attractive to foreign investors.

Analysts indicated that the market is now pricing in a lower probability of aggressive monetary policy tightening by the Fed in the coming months. This shift in sentiment contributed to the dollar’s weakness across the board.

The euro gained against the dollar, while the British pound and the Japanese yen also strengthened. Commodity-linked currencies, such as the Australian and Canadian dollars, also benefited from the dollar’s decline.