US dollar strengthens ahead of Fed rate cut move

By Chibuike Oguh

NEW YORK (Reuters) -The U.S. dollar strengthened against most major currencies on Tuesday following better-than-expected retail sales data that seemed to support a less aggressive stance by the Federal Reserve when it delivers a much expected interest rate cut.

Commerce Department data showed on Tuesday that U.S. retail sales unexpectedly rose 0.1% in August, suggesting that the economy remained on solid footing through much of the third quarter.

The Fed's Federal Open Market Committee will give its interest rate decision at the conclusion of its meeting on Wednesday after which Chair Jerome Powell will hold a press conference.

The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, gained 0.14% at 100.84.

Against the yen, the dollar rose 0.84% to 141.765 after weakening slightly following the retail sales data.

The euro hovered around $1.1132, not far from the year's high of $1.1201.

"We obviously are waiting for the FOMC. That's probably the overarching theme and we've had some moves with economic data that have come out today," said Axel Merk, president and chief investment officer at Merk Investments.

Currency bid prices at 17 September​ 03:06              

p.m. GMT

Description RIC Last U.S. Close Previous Session Pct Change YTD Pct High Bid Low Bid

Dollar index 100.88 100.7 0.17% -0.48% 100.94 100.56

Euro/Dollar 1.1119 1.1133 -0.12% 0.74% $1.1146 $1.1112

Dollar/Yen 141.65 140.59 0.72% 0.39% 141.84 140.36

Euro/Yen 1.1119​ 156.53 0.63% 1.21% 157.87 156.06

Dollar/Swiss 0.8468 0.8449 0.2% 0.58% 0.8478 0.843

Sterling/Dollar 1.3178 1.3216 -0.26% 3.58% $1.3229 $1.318​

Dollar/Canadian 1.3589 1.3587 0.02% 2.52% 1.3617 1.3581

Aussie/Dollar 0.6759 0.6752 0.15% -0.83% $0.6769 $0.6742

Euro/Swiss 0.9416 0.9403 0.14% 1.4% 0.9422 0.9383

Euro/Sterling 0.8436 0.8423 0.15% -2.69% 0.8438 0.8419

NZ Dollar/Dollar 0.6187 0.6201 -0.19% -2.06% $0.6211 0.6179

Dollar/Norway 10.5954​ 10.5865 0.08% 4.54% 10.623 10.5601

Euro/Norway 11.7828 11.786 -0.04% 4.98% 11.8099 11.7553



Dollar/Sweden 10.1895 10.1687 0.2% 1.22% 10.2075 10.1504

Euro/Sweden 11.331 11.322 0.08% 1.85% 11.3465 11.306

Source: Investing.com