Dollar down on retail sales data
May 11, 2006
The US dollar tried to stage a rally on Thursday after the US Treasury declined to label China as a “currency manipulator” in its semi-annual foreign exchange report and after the Federal Reserve raised the interest rates another 25 basis points to 5 percent, but the rally fizzled out after new data on retail sales in the US showed a gain of only 0.5 percent in April overall, and an even lower 0.1 percent rise when gasoline sales were taken out of the equation.
After an initial gain of 0.9 percent in relation to the euro and the Japanese yen, by mid-afternoon in New York the greenback had lost 0.1 percent to the yen, to ¥110.47. In addition, the euro had recovered to gain 0.2 percent versus the dollar to $1.2823.
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