Dollar falls on weak retail sales data

AP News
Posted: Jul 16, 2012 3:26 PM

NEW YORK (AP) — The dollar fell against most major currencies Monday after the government reported that Americans spent less last month.

The Commerce Department said retail sales fell 0.5 percent in June from May. It was the third straight monthly drop, which worried investors because it's the first time that has happened since the height of the financial crisis in 2008.

Traders will be closely watching Federal Reserve Chairman Ben Bernanke's testimony in Washington on Tuesday. They will be looking to see if Bernanke offers any signs that the Fed will launch another round of bond purchases to boost the economy. Those purchases push interest rates lower, weakening the dollar.

The euro rose to $1.2278 late Monday from $1.2241 late Friday. The British pound rose to $1.5630 from $1.5570.

The dollar fell to 78.82 Japanese yen from 79.27 yen and to 0.9782 Swiss franc from 0.9812 Swiss franc.

The dollar rose slightly to 1.0146 Canadian dollar from 1.0141 Canadian dollar.