Summary Dollar moved higher against other currencies on Monday after an encouraging US retail sales report.
NEW YORK (AFP) - The dollar moved higher against other major currencies on Monday after an encouraging US retail sales report and hints of more stimulus in the pipeline from the European Central Bank.
Around 2100 GMT, the euro bought $1.3820, down from $1.3883 late Friday.
The dollar also rose against the Japanese currency, to 101.82 yen from 101.59 yen. The euro fell to 140.74 yen from 141.13.
"A tug of war is shaping up in the EUR/USD with jawboning by European policy makers putting downside pressure on the pair and the recent decline in US yields providing upside support," said Kathy Lien, head of foreign exchange strategy at BK Asset Management.
Currency traders digested comments from ECB chief Mario Draghi over the weekend warning that policy makers may need to take action to stem the euro's rise.
"Verbal intervention from the European Central Bank this weekend broke the euro's advance towards one-month highs against the US dollar, with markets bracing themselves for more central bank guidance this week," said Nawaz Ali, market analyst at Western Union Business Solutions.
Ali noted that Federal Reserve Chair Janet Yellen would be speaking publicly twice this week, starting Tuesday. "Her comments could have a big impact on US dollar trade."
The US government's report on March retail sales came in a bit better than expected, with sales rising 1.1 percent from February. But overall data in the report revealed little growth momentum in consumer spending, which accounts for most US economic activity.
The steady but lackluster pace of improvements in US economic data was expected to keep the Fed taking measured reductions in massive stimulus to exit the asset-purchase program entirely before the year ends.
A Fed hike in near-zero interest rates appeared unlikely until at least next year.
"Until more Fed officials get on board with the idea of tightening, the dollar will have a tough time recovering," Lien said.
The dollar rose to 0.8796 Swiss francs from 0.8752 late Friday.
The greenback also gained slightly against the British pound, which slipped to $1.6726 from $1.6729.
