Dollar Near 3-Week Peak After US Retail Sales

The dollar settled near three-week highs on Friday, September 17, after better-than-expected US retail sales data boosted bets on the strength of the US economy and the prospects of abandoning its stimulus program sooner than expected.

The euro rebounded, recording $1.1783, but it remains close to a three-week low.

US retail sales unexpectedly rose in August by 0.7 percent from the previous month, despite expectations for a 0.8 percent decline.

The data helped dampen cautious views about the US economy after weak inflation and job growth reading earlier this month, and revived expectations of an early cut in the Federal Reserve’s asset purchases.

The dollar index settled at 92.799, down slightly during the session, but still near a three-week high reached on Thursday at 92.965.

The Swiss franc made up for its losses after hitting a five-month low against the dollar at 0.9280 francs.

The dollar rose to 109.84 yen, after rising 0.34 percent on Thursday, moving away from a six-week low hit on Wednesday at 109.11.