Investing.com - The dollar hit session highs against the other major currencies on Tuesday after data showed that U.S. core retail sales rose at the fastest pace in seven months in July.
During European afternoon trade, the dollar extended gains against the yen, with USD/JPY advancing 1.33% to 98.18.
The Commerce Department said core retail sales, which exclude automobile sales, rose 0.5% in July, compared to forecasts for a 0.4% increase.
Core retail sales for June were revised up to 0.1% from a flat reading.
Overall retail sales rose by a seasonally adjusted 0.2% last month, missing expectations for a 0.3% increase.
Retail sales figures for June were revised up to a 0.6% gain from a previously reported increase of 0.4% the report said.
The data reinforced the view that the economic recovery is strong enough for the Federal Reserve to begin phasing out its asset purchase program later this year.
The yen weakened across the board earlier Tuesday following reports that Japan’s Prime Minister Shinzo Abe is looking at lowering the corporate tax rate as a way to offset a planned increase in sales tax.
Elsewhere, the dollar hit one-week highs against the euro, with EUR/USD down 0.26% to 1.3267.
The euro briefly touched session highs earlier after a report showed that the closely watched ZEW index of German economic sentiment rose to a five-month high of 42.0 in August from July’s reading of 36.3. Economists had forecast a reading of 40.0.
The index of economic expectations for the euro zone was also higher, increasing to 44.0, the highest since April 2010, up from 32.8 in July.
The dollar edged higher against sterling, with GBP/USD dipping 0.05% to 1.5454 after official data showed that the rate of consumer inflation in the U.K. eased in line with forecasts in July.
The Office for National Statistics said consumer price inflation ticked down to 2.8% on a year-over-year basis, in line with economists’ expectations, from 2.9% in June.
The dollar extended gains against the Swiss franc, with USD/CHF rising 0.73% to 0.9325.
The greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD down 0.30% to 0.9119, NZD/USD losing 0.43% to trade at 0.7975 and USD/CAD climbing 0.25% to 1.0329.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.44% to 81.79.
During European afternoon trade, the dollar extended gains against the yen, with USD/JPY advancing 1.33% to 98.18.
The Commerce Department said core retail sales, which exclude automobile sales, rose 0.5% in July, compared to forecasts for a 0.4% increase.
Core retail sales for June were revised up to 0.1% from a flat reading.
Overall retail sales rose by a seasonally adjusted 0.2% last month, missing expectations for a 0.3% increase.
Retail sales figures for June were revised up to a 0.6% gain from a previously reported increase of 0.4% the report said.
The data reinforced the view that the economic recovery is strong enough for the Federal Reserve to begin phasing out its asset purchase program later this year.
The yen weakened across the board earlier Tuesday following reports that Japan’s Prime Minister Shinzo Abe is looking at lowering the corporate tax rate as a way to offset a planned increase in sales tax.
Elsewhere, the dollar hit one-week highs against the euro, with EUR/USD down 0.26% to 1.3267.
The euro briefly touched session highs earlier after a report showed that the closely watched ZEW index of German economic sentiment rose to a five-month high of 42.0 in August from July’s reading of 36.3. Economists had forecast a reading of 40.0.
The index of economic expectations for the euro zone was also higher, increasing to 44.0, the highest since April 2010, up from 32.8 in July.
The dollar edged higher against sterling, with GBP/USD dipping 0.05% to 1.5454 after official data showed that the rate of consumer inflation in the U.K. eased in line with forecasts in July.
The Office for National Statistics said consumer price inflation ticked down to 2.8% on a year-over-year basis, in line with economists’ expectations, from 2.9% in June.
The dollar extended gains against the Swiss franc, with USD/CHF rising 0.73% to 0.9325.
The greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD down 0.30% to 0.9119, NZD/USD losing 0.43% to trade at 0.7975 and USD/CAD climbing 0.25% to 1.0329.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.44% to 81.79.