FOREX-Dollar index climbs after surprise rebound in US retail sales
Band Caroline Valetkevitch
NEW YORK, September 16 (Reuters) – The dollar increased and reached its highest level in almost three weeks against a basket of currencies on Thursday after data showed US retail sales unexpectedly surged in August, allaying concerns about a sharp slowdown in economic growth.
The dollar index = USD, which measures the US currency against six others, added to the gains following the report and rose 0.5% for the last time to 92,866. It reached its highest level since August 27.
Retail sales rose 0.7% last month, boosted in part by back-to-school purchases and child tax credit payments, while data for July was revised down.
A separate report showed that initial claims for unemployment benefits in the United States increased by 20,000 to seasonally adjusted 332,000 for the week ending September 11. Economists had forecast 330,000 claims for the last week.
“If you look at the retail sales figure, it’s pretty constructive even with the revisions, so we see the dollar benefit, especially against funding currencies like the euro, swiss and yen,” he said. North American official Bipan Rai said. forex strategy for CIBC Capital Markets in Toronto.
The news could bolster investor expectations for next week’s Federal Reserve policy meeting and how soon the U.S. central bank will start cutting stimulus.
“It’s as if lingering concerns about the underlying economy… which have been wiped out a bit. As we head to the Fed next week, the evidence supports the idea that we are going to get a signal to cut back. of the Fed at the meeting, “he said.
On Tuesday, the dollar index fell to a one-week low at 92.321 after a weaker-than-expected inflation report. Its low for the month was 91,941 on September 3 when wage data disappointed.
Investors are seeking clarification on the outlook for both lower rates and interest rates at the Fed’s two-day policy meeting that ends next Wednesday.
The tapering typically lifts the dollar as it suggests the Fed is one more step towards tightening monetary policy.
It also means that the central bank will buy less debt assets, thus reducing the amount of dollars in circulation, which in turn increases the value of the currency.
The dollar also gained 0.3% at 109.70 yen JPY = EBS, after slipping to a six-week low of 109.110 in the previous session.
The euro EUR = EBSwas 0.4% below $ 1.1766.
The Swiss franc also fell against the dollar and was the last at 0.9263 francs to the dollar. CHF = EBS
Elsewhere, the Australian dollar AUD = D3 was broken down 0.5% to $ 0.7296.
Earlier, data showed the country’s unemployment rate unexpectedly fell to 4.5%, but the statistics office said the change reflected a drop in the participation rate rather than a strengthening in the labor market. .
In cryptocurrencies, bitcoin movements have been relatively moderate. It was down 0.9% for the last time at $ 47,711 BTC = BTSP. Ether changed hands at $ 3,589 ETH = BTSP, down 0.7%.
AMC Entertainment Holdings Inc AMC.N Boss Adam Aron said in a tweet this week that the movie chain will accept ether, bitcoin cash and litecoin alongside bitcoin for the purchase of tickets.
Price of currency offers at 3:21 p.m. (1921 GMT)
US Close previous session
Percentage change for the current year
EUR = EBS
+ $ 1.1820
Dollar / Yen
JPY = EBS
Euro / yen
Dollar / Switzerland
CHF = EBS
Pound sterling / dollar
GBP = D3
CAD = D3
Australia / Dollar
AUD = D3
+ $ 0.7345
+ $ 0.7274
Euro / Switzerland
Euro / Pound
New Zealand dollar / Dollar
NZD = D3
+ $ 0.7140
+ $ 0.7060
Dollar / Norway
NOK = D3
Euro / Norway
Dollar / Sweden
Euro / Sweden
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(Reporting by Caroline Valetkevitch Additional reporting by Ritvik Carvalho in London and Kevin Buckland in Tokyo Editing by Alexander Smith, Mark Potter and Jonathan Oatis)
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