Dollar Gains Amid Retail Sales Boost and Powell Denial
The dollar rose on Thursday as U.S. retail sales exceeded expectations, supported by rising Treasury yields. President Trump's denial of firing Federal Reserve Chair Powell also influenced the market. The dollar index, still down 9% year-to-date, saw varied currency movements globally with sterling and yen weakening.
The dollar strengthened on Thursday after U.S. retail sales data for June outperformed expectations. This came amid a temporary market dip on Wednesday, following President Trump's denial of reports that he intended to fire Federal Reserve Chair Jerome Powell.
Analysts describe this month's dollar rally as a consolidation phase after a significant earlier sell-off. Marc Chandler, from Bannockburn Global Forex, attributes the dollar's recent gains to firm U.S. interest rates and short covering.
Despite positive retail and jobless data, the dollar's immediate gains were short-lived as investors evaluate the impact of Trump's tariff policies, fiscal concerns, and Federal Reserve autonomy. Other currencies, like the yen and the pound, have also seen fluctuations amid global political and economic uncertainties.
(With inputs from agencies.)
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