The dollar weakened against major currencies after the release of unexpectedly poor retail sales figures. The data indicated a slowdown in consumer spending, a key driver of economic growth.

Analysts suggest the disappointing figures may prompt the Federal Reserve to adopt a more cautious approach to raising interest rates. Higher interest rates typically make a currency more attractive to investors.

The euro gained against the dollar, as did the Japanese yen and the British pound. The currency market is now closely watching upcoming economic data releases for further clues about the direction of the U.S. economy.

Some economists believe that the weak retail sales numbers could be a temporary blip, while others see it as a sign of a more significant slowdown. The debate over the health of the U.S. economy is likely to continue in the coming weeks.