LONDON, June 27: The euro fell against the dollar on Wednesday despite weaker-than-expected figures for US durable goods orders as a meeting of the Federal Reserve loomed over the currency market.In late European trading the euro dropped to $1.3435, from $1.3451 late on Tuesday in New York.

The dollar dropped to 122.50 yen, from 123.24 yen late Tuesday.

The market was cautious as the Federal Reserve began a two-day rate-setting meeting in Washington.

The US central bank, which will announce a decision on Thursday, is expected to leave US interest rates on hold at 5.25pc.

The foreign exchange market will look for clues in the Fed's accompanying statement about the outlook for American borrowing costs. The Fed, which has consistently highlighted inflation dangers while playing down the risks of an economic slump, was expected to maintain this theme.

Pending the announcement, the euro failed to benefit from Commerce Department data that showed orders for durable goods — big-ticket items like aircraft and automobiles — fell a bigger-than-expected 2.8pc in May from April, mainly due to a slump in aircraft orders.—AFP