The dollar experienced a slight decline on Wednesday after the release of US retail sales data that fell short of expectations. This weaker-than-anticipated performance has raised concerns about the strength of the US economy.

The Commerce Department reported that retail sales increased by only 0.9% in March, below the 1.0% rise economists had predicted. This suggests consumer spending, a key driver of economic growth, may be slowing.

Currency analysts noted that the disappointing data prompted some investors to reduce their dollar holdings. The dollar index, which measures the greenback against a basket of six major currencies, edged down 0.2% to 99.65.

“The retail sales numbers were definitely a disappointment,” said John Smith, a currency strategist at a major investment bank. “They raise questions about the sustainability of the economic recovery.”

The euro benefited from the dollar’s weakness, rising 0.3% to $1.0660. The Japanese yen also gained slightly, trading at 119.15 per dollar.

Looking ahead, investors will be closely watching upcoming economic data releases for further clues about the health of the US economy. The Federal Reserve’s monetary policy decisions will also be a key factor influencing the dollar’s trajectory.