The US dollar rose against the Japanese yen today as positive economic reports from the United States continued to fuel expectations of tighter monetary policy from the Federal Reserve. At the same time, the greenback slipped versus the euro and the Great Britain pound.
US retail sales grew 0.6 percent in August, exceeding analysts’ projection of 0.3 percent growth. The Thomson Reuters/University of Michigan preliminary consumer sentiment index rose from 82.5 in August to 84.6 in September, the highest level in 14 months. This is compared to the median forecast of 83.2.
The data supported the optimistic outlook for the US economy. It is very good for dollar bulls ahead of the next week’s policy meeting where Fed members will determine their next steps, and positive indicators may influence their decision.
EUR/USD rose from 1.2924 to 1.2972, and GBP/USD advanced from 1.6252 to 1.6270 as of 17:25 GMT today, reversing its earlier drop to 1.6205. Meanwhile, USD/JPY ticked up from 107.10 to 107.14, reaching the high of 107.39 intraday — the strongest rate since September 2008.
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