U.S. Dollar Rallies after Retail Sales Gained

The dollar rose for a second day after retail sales gained more than forecast last month, adding to speculation the Federal Reserve will move to trim its $85 billion of monthly asset purchases at a meeting next week.

The euro fell from almost a six-week high versus the dollar as data showed industrial production in the 17 nations that share the currency contracted in October, highlighting the uneven nature of the economic recovery. The Australian dollar declined versus all of its major peers as central bank governor Glenn Stevens said the currency needs to be weaker.

“Taper is discussed more as a threat right now than as a tool, but the possibility of it still supports the dollar,” Douglas Borthwick, the head of foreign exchange at Chapdelaine & Co. in New York, said in a phone interview.

Bloomberg

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