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U.S. dollar ticks up after retail sales report

NEW YORK
2023-07-19 05:18

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NEW YORK, July 18 (Xinhua) -- The U.S. dollar nudged up on Tuesday and continued its attempts to settle above the 100 level as traders reacted to the U.S. retail sales report.

The dollar index, which measures the greenback against six major peers, rose 0.10 percent to 99.9385 in late trading.

The retail sales in the United States rose 0.2 percent in June to 689.5 billion dollars, the U.S. Census Bureau reported on Tuesday.

That was a slower pace than in May and April, and matched the 0.2 percent increase in consumer prices last month, a sign that Americans' spending was keeping up with but not outpacing inflation.

Meanwhile, industrial production in the United States declined by 0.5 percent for the second straight month in June, the Federal Reserve's monthly publication revealed on Tuesday.

The Housing Market Index grew from 55 in June to 56 in July, according to the National Association of Home Builders.

Fed officials are still on track to raise rates to a 22-year high at their July 25-26 meeting, yet some analysts warned that the U.S. dollar could soon wipe out all of its post-pandemic gains.

"As it was the case in January/February before the Silicon Valley Bank crisis, the market is anticipating the peak in U.S. rates and a further narrowing relative rates. If nothing happens to scupper those expectations, I would expect the dollar index to move closer but not all the way to the lows at the end of 2020," said Kit Juckes, a macro strategist at Société Générale.

In late New York trading, the euro was down to 1.1228 U.S. dollars from 1.1242 dollars in the previous session, and the British pound fell to 1.3045 U.S. dollars from 1.3082 dollars in the previous session.

The U.S. dollar bought 138.8750 Japanese yen, higher than 138.6470 Japanese yen of the previous session. The U.S. dollar fell to 0.8576 Swiss francs from 0.8600 Swiss francs, and it was down to 1.3174 Canadian dollars from 1.3184 Canadian dollars. The U.S. dollar fell to 10.2135 Swedish krona from 10.2316 Swedish krona.
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