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July 14, 2015 at 08:24 AM
(Bloomberg) — The dollar weakened after a report showed sales at U.S. retailers unexpectedly fell in June, clouding the outlook for the economy as the Federal Reserve looks to raise interest rates.
The greenback dropped against most of its major peers after retail sales declined by 0.3 percent in June, less than the 0.3 percent gain forecast by analysts surveyed by Bloomberg, following a revised 1 percent increase in May. Traders pushed back the projected timing for the Fed to increase rates for the first time in almost a decade, as Fed Chair Janet Yellen will address Congress this week on the U.S. economic outlook.
“It puts the dollar on the back foot temporarily,” Matt Derr, a foreign-exchange strategist at Credit Suisse Group AG in New York, said by e-mail. “But with the Bank of Canada meeting tomorrow and Yellen’s testimony, it remains to be seen how long the U.S. dollar weakness sticks around.”
The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 of its major peers, fell 0.2 percent to 1,194.37 at 11:52 a.m. in New York, trimming its earlier drop. The dollar fell 0.1 percent to $1.1012 per euro and was little changed at 123.40 yen.
