Investing.com – The dollar fell against a basket of major currencies despite a rise in retail sales for the first time in four months as a strong rally in sterling added to downside momentum.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.39% to 89.16.
The Commerce Department said on Monday that retail sales fell , topping economists’ forecast for a 0.4% increase.. The retail sales control group – which has a larger impact on U.S. GDP – in-line with expectations.
The Federal Reserve Bank of New York, meanwhile, revealed lower-than-expected Empire State Manufacturing Index .
The upbeat retail sales print did little to help the dollar recover as market participants said the data is not likely to significantly boost first-quarter U.S. GDP growth, but remained confident that consumer spending will “accelerate” given the strong labor market and recent tax cuts.
“Tax cuts and a tighter labor market should support household spending going forward and we expect consumption to accelerate over the remainder of the year as a result,” CIBC said.
A sharp rise in to $1.4329, up 0.63%, to a nearly three-month high, weighed on the greenback as sterling continued to benefit from the European Union and UK’s agreement on both divorcing terms and a 21-month post-Brexit transitory period.
fell 0.13% to Y107.27 as traders focused on developments in Japan, where approval ratings for Japan prime Minister Shinzo Abe continued to drop.
Support for Abe fell to 26.7%, Reuters reported, citing a survey by private broadcaster Nippon TV released on Sunday. Standard Chartered warned that historically a drop in the approval rating to 30% “has been a pivotal level for regime changes.”
fell 0.22% to C$1.2579, while rose 0.37% to $1.2376.
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