The dollar touched the highest in almost a week versus the yen before a report today that may show U.S. retail sales climbed for a fourth month.
The Bloomberg U.S. Dollar Index advanced for a second day amid speculation stronger data will bolster the case for the Federal Reserve to scale back its asset purchases. The yen slid against most of its 16 major counterparts ahead of figures that may show Japan’s machine orders fell in June, spurring bets that the Bank of Japan will step up stimulus measures.
“The dollar will be bought if we get strong numbers on retail sales,” said Koji Iwata, vice president of foreign-exchange trading at Mizuho Bank Ltd. in New York. “The market’s view on Fed tapering in September has not changed.”
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