U.S. Dollar Enjoys Rise after Retail Sales Data

The dollar snapped a three-day skid after U.S. retail sales climbed the most in eight months, further evidence of a strengthening economy as the Federal Reserve considers its first interest-rate increase since 2006.

The greenback gained versus most major peers as the number of Americans filing for jobless benefits dipped to a three-week low before the central bank meets Dec. 16-17. The yen fell for the first time in four days as Prime Minister Shinzo Abe’s Liberal Democratic Party was poised for re-election this weekend. Norway’s krone slipped below 9 per euro for the first time since 2009 on an unexpected interest-rate cut. The Mexican peso plunged as emerging-market currencies fell.

“As long as U.S. data continues to be much stronger than data in the rest of the world, the dollar will continue to strengthen,” said Kate Warne, a St Louis-based investment strategist at Edward Jones & Co., which manages $870 billion. The retail-sales report “really does bode well for another quarter of strong growth.”

Bloomberg

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