Investing.com - The dollar strengthened against the other major currencies on Monday, boosted by hopes that strong U.S. retail sales data would reinforce expectations for an early conclusion to the Federal Reserve’s stimulus program.
During European afternoon trade, the dollar advanced against the yen, with USD/JPY climbing 0.57% to 96.79, after briefly falling to lows of 95.93 when data showed that Japan’s economy expanded at a slower-than-forecast rate in the second quarter.
Official data released Monday showed that Japan’s economy expanded by 0.6% in the second quarter and grew by 2.6% on a year-over-year basis. Economists had forecast growth of 0.9% for the quarter.
The dollar firmed up amid expectations that strong U.S. retail sales data for July, due for release on Tuesday would underline the view that the economic recovery is on track.
The dollar came under broad selling pressure last week after the latest U.S. jobs report on August 2 showed that the economy added fewer jobs than expected in July. The disappointing data saw investors reassess expectations for when the U.S. central bank would start to taper its asset purchase program.
Elsewhere, the dollar pushed higher against sterling, with GBP/USD sliding 0.20% to 1.5475.
The dollar also gained ground against the euro, with EUR/USD losing 0.42% to trade at 1.3286.
The dollar rose to session highs against the Swiss franc, with USD/CHF climbing 0.58% to 0.9277.
The Swiss franc was little changed after official data showed that retail sales in Switzerland rose 2.3% from a year earlier in June. Economists had expected retail sales to remain unchanged from May’s figure of 1.8%.
The greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD down 0.33% to 0.9167, NZD/USD shedding 0.34% to trade at 0.8011 and USD/CAD rising 0.16% to 1.0303.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was 0.40% higher at 81.49.
During European afternoon trade, the dollar advanced against the yen, with USD/JPY climbing 0.57% to 96.79, after briefly falling to lows of 95.93 when data showed that Japan’s economy expanded at a slower-than-forecast rate in the second quarter.
Official data released Monday showed that Japan’s economy expanded by 0.6% in the second quarter and grew by 2.6% on a year-over-year basis. Economists had forecast growth of 0.9% for the quarter.
The dollar firmed up amid expectations that strong U.S. retail sales data for July, due for release on Tuesday would underline the view that the economic recovery is on track.
The dollar came under broad selling pressure last week after the latest U.S. jobs report on August 2 showed that the economy added fewer jobs than expected in July. The disappointing data saw investors reassess expectations for when the U.S. central bank would start to taper its asset purchase program.
Elsewhere, the dollar pushed higher against sterling, with GBP/USD sliding 0.20% to 1.5475.
The dollar also gained ground against the euro, with EUR/USD losing 0.42% to trade at 1.3286.
The dollar rose to session highs against the Swiss franc, with USD/CHF climbing 0.58% to 0.9277.
The Swiss franc was little changed after official data showed that retail sales in Switzerland rose 2.3% from a year earlier in June. Economists had expected retail sales to remain unchanged from May’s figure of 1.8%.
The greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD down 0.33% to 0.9167, NZD/USD shedding 0.34% to trade at 0.8011 and USD/CAD rising 0.16% to 1.0303.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was 0.40% higher at 81.49.