NEW YORK (Reuters) – The dollar extended gains after data showed U.S. retail sales rose sharply after two straight months of monthly declines, suggesting that the Federal Reserve will keep interest rates higher for some time.
U.S. retail sales surged 3.0% last month. Data for December was unrevised to show sales dropping 1.1% as previously reported. Economists polled by Reuters had forecast sales would increase 1.8%, with estimates ranging from 0.5% to 3.0%.
The dollar rose 0.6% against the yen to 133.91 yen.
The euro, meanwhile, extended losses against the dollar, and last traded at $1.0692, down 0.4%.
The dollar index also increased gains to 103.78, up 0.5%.
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Toby Chopra)
