The US dollar has retreated against other major currencies after weak US economic data suggested the Federal Reserve could wait longer before raising benchmark interest rates.

US retail sales fell 0.3 per cent in September in the first decline in seven months, the Commerce Department reported.

US producer prices dipped 0.1 per cent in September, the first drop since August 2013, the Labor Department said.

The US dollar in September hit a four-year high against other currencies in anticipation that the Fed would move more quickly than other central banks to tighten monetary policy.

But Wednesday’s poor figures signalled the US economy is still performing below the Fed’s benchmarks for lifting interest rates.

Gains in the greenback earlier in the day “quickly evaporated” following the retail sales and inflation reports, said Joe Manimbo, analyst at Western Union Business Solutions.

“The buck is likely to enjoy selective strength but general upside should remain capped by expectations the Fed may wait longer before lifting borrowing rates.”

The euro bought $US1.2834 and Y135.94 compared with $US1.2663 and Y135.51 on Tuesday. The greenback bought Y105.91 against Y107.02 the day before.