Summary Dollar advanced modestly against the euro and other currencies after a solid US retail sales report.
NEW YORK (AFP) - The dollar advanced modestly Thursday against the euro and other currencies after a solid US retail sales report sparked speculation that the Federal Reserve will soon lift benchmark interest rates.
US retail sales rose 0.6 percent in July from June to $446.5 billion, a slightly bigger increase than the 0.5 percent gain projected by analysts.
The Commerce Department also raised its figures for June sales to unchanged from the prior estimate of a 0.3 percent decline.
"Markets grew a bit more confident in the Fed raising rates this year after America s main economic engine, the consumer, stepped up spending," said Joe Manimbo, senior market analyst at Western Union Business Solutions.
"Market sentiment remained brittle amid still elevated concerns about China s slowing economy and depreciating currency, which should keep the dollar and its top peers on a volatile footing."
The dollar s gains Thursday made up for some of the losses Wednesday, when the US currency dropped on speculation that the Fed will delay hiking interest rates following China s devaluation of the yuan.
