Forex – Dollar Shrugs off N.Korea Worries, Set for Weekly Gain

© Reuters. The dollar was on track for a weekly gain on Friday

Investing.com – The dollar fell against a basket of major currencies on Friday, after retail sales data unexpectedly undershot expectations in August while sterling rose to its highest since June last year adding to downside momentum in the greenback.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.25% to 91.80.

A sluggish month for motor vehicle sales weighed on retail sales growth in August, suggesting that consumer spending in the third-quarter may come under pressure, tapering investor expectation of strong third-quarter economic growth.

The Commerce Department said on Friday dipped 0.2% last month, missing expectations of a 0.1% rise.

The soft retail sales data came just hours ahead of manufacturing and consumer sentiment that topped forecasts.

The New York Empire State Manufacturing Survey to 24.4 for September from 25.2 previously, although this was significantly above consensus expectations of 19.0.

After hitting seven month highs in August, the , a survey of consumers by The University of Michigan, fell to 95.3 in September but handily topped expectations.

Sterling, meanwhile, added to gains from the previous session, hitting its highest level since the Brexit vote, piling further pressure on the greenback after Bank of England committee member Gertjan Vlieghe, said the “moment is approaching” for a rate increase.

rose to $1.3571, up 1.29% while gained 0.36% to C$1.2209.

added 0.13% to $1.1935 while slumped 1.12% to £0.8796.

rose 0.54% to Y110.85, as safe-haven demand eased following an earlier spike in geopolitical uncertainty after North Korea launch a missile over Japan on Friday.

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