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Dollar Down, But Near Three Week High After “Surprisingly Stong” U.S. Retail Data By


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By Gina Lee – The dollar was down on Friday morning in Asia but remained near three-week highs. from the U.S. rekindled expectations that the U.S. Federal Reserve will begin asset tapering earlier than expected and helped capped the U.S. currency’s losses.

The that tracks the greenback against a basket of other currencies inched down 0.03% to 92.895 by 10:30 PM ET (2:30 AM GMT).

The pair edged up 0.17% to 109.88.

The pair inched down 0.03% to 0.7287 and the pair inched down 0.01% to 0.7063.

The pair inched up 0.08% to 6.4618. The last traded at 6.4530 to the dollar as the Chinese currency faces pressure from growing worries about China’s real estate sector. All eyes are on China Evergrande Group (HK:) and its coupon payment due next week.

The pair was steady at 1.3788.

The U.S. data, released on Thursday, showed that grew 1.8% month-on-month and grew 0.7% month-on-month in August.

September’s was 30.7, while the was at 26.3.

“Yesterday’s data was quite strong. Because of the COVID-19 Delta variation, markets were concerned that August would see a drop in consumption. However, retail sales were surprisingly strong.” Yujiro Goto, chief currency strategist at Nomura Securities, told Reuters.

Investors will now wait and see whether the data will impact the Fed’s timeline for asset tapering when the central bank hands down its policy decision next week. Investors will also be waiting for the September Michigan Consumer Expectations (Michigan Consumer Sentiment) indexes, which are due to arrive later today.

In Japan, the ruling Liberal Democratic Party’s (LDP) leadership race that determines who becomes the country’s next prime minister, had a limited impact on the yen so far. This race will officially begin on Friday before the September 29th vote.

Taro Kono (COVID-19 vaccine minister) is currently the leader in this race. Fumio Koshida, former foreign minister and Sanae Takaichi, former minister of internal affairs are close behind.

The world’s top macro-players aren’t expecting major policy changes. A lack of moves in the yen is a testament to that,” Credit Suisse (SIX:) vice chairman and chief economist Hiromichi Shirakawa told Reuters.

On Thursday, former minister for internal affairs Seiko Nada added to the uncertainty.

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