The US Dollar has extended its gains against the majority of its most traded peers after data showed that retail sales in the world’s biggest economy increased for a fourth consecutive month in July.
According to the Washington based Commerce Department, retail sales increased by 0.2%. The figure suggests a slight slowdown as June’s figure was a 0.6% gain. Economists had been expecting a 0.3% advance. Retail sales not including motor vehicles rose to 0.5%, up from the 0.1% recorded in June.
The non motor reading contributes to the figures used to calculate GDP making the measure of demand that feed into GDP climbing by its highest level so far this year. July’s rise is the biggest recorded since December 2012.
The data highlights how the improving employment situation and rising household wealth is giving Americans the confidence to spend. The continuing growth in retail sales is countering the impacts of the Government cut backs and tax rises which otherwise be holding back the US economy.
“Households may be spending a bit more freely in response to the recent gains in employment,” said Paul Dales, an economist at Capital Economics.
Many economists are now expecting the Federal Reserve to begin tapering its asset purchasing programme next month.
“Today’s number (for retail sales) should keep the Fed on track to curtail quantitative easing purchases in September,” said Joseph Trevisani, chief market strategist at WorldWideMarkets
As a result the US Dollar has made further gains against emerging market currencies such as the Rupee and South African Rand.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6476
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7541
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0980
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 98.1878
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0324
(Correct as of 14:35 pm GMT)
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