Written by Karen Britel
NEW YORK (Reuters) – The dollar rebounded from 15-month lows against a basket of six major currencies on Tuesday after strong core retail sales data for June, as investors await the Federal Reserve’s interest rate decision next week.
* US retail sales rose less-than-expected in June, up 0.2% for the month. Data for May was also revised to show an increase of 0.5%, instead of 0.3%.
*However, the underlying data was stronger. Excluding automobiles, gasoline, building materials and food services, retail sales rose 0.6% in June. The numbers for May were revised slightly upward to show core retail sales increased by 0.3% instead of the previously reported 0.2%.
* The number indicates that “the Fed is making some progress,” said Bipan Rai of CIBC Capital Markets in Toronto.
* However, “The control group number is still very strong, which will have an impact on GDP and domestic demand. This is still very supportive of the Fed raising interest rates again later in the month.”
* The dollar fell after a slowdown in the increase in consumer and producer prices in June raised expectations that the US central bank will stop raising interest rates after an increase of 25 basis points is scheduled for the meeting on July 25-26.
* It rose 0.04% to 99,924, after falling to 99,549, its lowest level since April 2022.
* The euro is trading stable at $1.1229, after trading at $1.12760, the highest level since February 2022.
* The US currency rose 0.1% against its Japanese counterpart at 138.83 yen, after falling to 137.245 on Friday, its lowest level since May 17.
The pound fell 0.22% to $1.3046, after touching $1.31440 on Monday, the highest level since April 2022.
(Reporting by Samuel Indyk in London; Editing in Spanish by Manuel Farias and Carlos Serrano)
