WASHINGTON (dpa-AFX) - The U.S. dollar advanced against major currencies on Tuesday, extending gains from previous session, after strong retail sales data dimmed chances of a deep cut in interest rates later this month.
According to data released by the Commerce Department this morning, retail sales were up 0.4% in June, matching the downwardly revised increase in May. Economists had expected retail sales to inch up by 0.1% compared to the 0.5% growth originally reported for the previous month.
A report from the Labor Department showed that U.S. import prices fell more than expected in June, declining by 0.9%, against forecast for a 0.7% drop.
The report showed that export prices slumped by 0.7% in June after dipping by 0.2% in May. Economists had expected another 0.2% drop.
The Federal Reserve released a report that showed industrial production was unchanged in June after climbing by 0.4% in May. Economists had expected production to edge up by 0.2%.
The report said manufacturing output climbed by 0.4% and mining output rose by 0.2%.
The dollar index rose to 97.44, gaining more than 0.5% before retreating slightly to 97.40.
Against the euro, the dollar strengthened to 1.1207, gaining about 0.44%.
Data from Eurostat showed that Eurozone's trade surplus grew in May, led by a rebound in exports, while imports decreased.
The seasonally adjusted trade surplus rose to EUR 20.2 billion from EUR 15.7 billion in April. Economists had forecast a surplus of EUR 17.5 billion.
Against Pound Sterling, the dollar was much more stronger, rising about 1% to 1.2396. It subsequently eased a bit to 1.2406, still firm with a sharp 0.89% gain.
Data from the Office for National Statistics showed that the UK unemployment rate remained unchanged at 44-year low in three months to May and wages grew at the fastest pace in 11 years.
The unemployment rate remained unchanged at 3.8 percent in three months to May, in line with expectations. This was the lowest since the final quarter of 1974.
The Japanese yen was weak as well against the dollar, easing to 108.26 yen a dollar, as against 107.91 yen late Monday.
Against the Aussie, the dollar gained 0.4% to 0.7011. The greenback was up 0.28% and 0.35%, against the loonie and Swiss franc at 1.3086 and 0.9879, respectively.
Copyright RTT News/dpa-AFX
© 2019 AFX News
