Investing.com - The dollar rose to session highs against the euro on Wednesday after stronger-than-forecast U.S. retail sales data but gains were held in check ahead of the minutes of the Federal Reserve’s October meeting later in the trading day.
During European afternoon trade, EUR/USD slipped 0.09% to 1.3525 from Tuesday’s close of 1.3537.
The Commerce Department said retail sales rose 0.4% in October, beating expectations for a 0.1% increase. Core retail sales were up 0.2%, above expectations for a 0.1% rise.
A separate report showed that U.S. consumer prices fell for the first time in six months in October, declining 0.1%.
Fed Chairman Ben Bernanke reiterated the bank’s commitment to highly accommodative monetary policy on Tuesday and said the Fed would only taper its USD85 billion-a-month asset purchase program when it was assured of a sustained recovery in the labor market.
Interest rates will probably remain near zero for a “considerable time” after the bank winds up the stimulus program, he added.
The minutes were expected to reveal more details on the bank’s decision to stick with the stimulus program last month.
USD/JPY was down 0.14% to 99.99, holding below the two-month highs of 100.42 struck on Friday.
The pound was close to three week highs against the dollar, with GBP/USD rising 0.15% to 1.6142.
The pound initially softened after Wednesday’s minutes of the Bank of England’s November meeting said there were “uncertainties” over the durability of the U.K. economic recovery and that there was a case for not raising interest rates immediately when the 7% unemployment threshold was reached.
The dollar dipped against the Swiss franc, with USD/CHF inching down 0.04% to 0.9105.
The greenback was broadly higher against the Australian, New Zealand and Canadian dollars, with AUD/USD down 0.66% to 0.9370, NZD/USD dropping 0.84% to trade at 0.8300 and USD/CAD slipping 0.12% to 1.0459.
Australia’s dollar weakened after Reserve Bank of Australia Assistant Governor Guy Debelle said Wednesday the bank would prefer the exchange rate to be lower.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.06% to 80.67.
During European afternoon trade, EUR/USD slipped 0.09% to 1.3525 from Tuesday’s close of 1.3537.
The Commerce Department said retail sales rose 0.4% in October, beating expectations for a 0.1% increase. Core retail sales were up 0.2%, above expectations for a 0.1% rise.
A separate report showed that U.S. consumer prices fell for the first time in six months in October, declining 0.1%.
Fed Chairman Ben Bernanke reiterated the bank’s commitment to highly accommodative monetary policy on Tuesday and said the Fed would only taper its USD85 billion-a-month asset purchase program when it was assured of a sustained recovery in the labor market.
Interest rates will probably remain near zero for a “considerable time” after the bank winds up the stimulus program, he added.
The minutes were expected to reveal more details on the bank’s decision to stick with the stimulus program last month.
USD/JPY was down 0.14% to 99.99, holding below the two-month highs of 100.42 struck on Friday.
The pound was close to three week highs against the dollar, with GBP/USD rising 0.15% to 1.6142.
The pound initially softened after Wednesday’s minutes of the Bank of England’s November meeting said there were “uncertainties” over the durability of the U.K. economic recovery and that there was a case for not raising interest rates immediately when the 7% unemployment threshold was reached.
The dollar dipped against the Swiss franc, with USD/CHF inching down 0.04% to 0.9105.
The greenback was broadly higher against the Australian, New Zealand and Canadian dollars, with AUD/USD down 0.66% to 0.9370, NZD/USD dropping 0.84% to trade at 0.8300 and USD/CAD slipping 0.12% to 1.0459.
Australia’s dollar weakened after Reserve Bank of Australia Assistant Governor Guy Debelle said Wednesday the bank would prefer the exchange rate to be lower.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.06% to 80.67.