The US Dollar extended gains against the majority of its most traded currency rivals this afternoon as advance retail sales figures exceeded estimates.
The US Dollar Exchange Rate was trading in the region of 101.6200 against the Japanese Yen as of 14:15 GMT
With retail sales for March declining by a negatively revised 5 per cent, economists had envisaged a 3 per cent drop in April, but the latest Commerce Department figures actually revealed a 0.1 per cent gain.
Positive progress in the US labour market was underpinned by rising stock and home values as well as lower fuel costs, giving consumers more scope to spend.
Of the 13 major categories which make up total retail sales 9 recorded gains. The 1.2 per cent increase at clothing stores was the most significant for over 12 months, while contrary to earlier industry data sales at automobile dealers were also up.
Earlier this month one senior US economist asserted that: ‘Low borrowing costs and rising consumer wealth should continue to support spending growth going forward.’
And after today’s report chief economist Michael Moran noted: ‘Consumers are staying active and providing support to the economy. We will see a slowdown this quarter, but it won’t be dramatic. There will be some damping of spending due to the payroll tax, but it will be mild.’
Recently economists predicted that household spending, responsible for almost three quarters of economic growth, will expand by 1.8 in the second quarter, following on from the first quarter’s impressive 3.2 per cent advance.
After the data was released the US Dollar climbed against the Euro, Yen and British Pound, as well as several of its other main currency counterparts. The ‘Greenback’s advance on the Euro was aided by the expectation that this week’s Eurozone GDP report will show a sixth consecutive quarter of contraction. The EUR/USD pairing could experience additional movement in response to today’s meeting of Eurozone finance ministers in Brussels.
Current US Dollar (USD) Exchange Rates
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The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6509 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7713 >
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0027 >
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 101.6200 >
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0093 >
The Pound Sterling/ US Dollar Exchange Rate is currently in the region of: 1.5346 <
The Euro/US Dollar Exchange Rate is currently in the region of: 1.2950 <
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9973 <
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9918 >
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8291 >
(Correct as of 14:15 GMT)
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