Dollar Falls on Weak Retail Sales

The dollar extended its declines against the euro and yen on Tuesday after data showed U.S. retail sales for December were below market expectations.

The euro gained against the dollar to $1.4900 from $1.4885 before the data. Against the yen, the dollar extended losses to 107.04 yen, from 107.55 just before. Dollar/yen is now at its lowest since June 2005.

U.S. retail sales fell 0.4 percent last month while markets were expecting no change from November.

Separately producer prices surged 0.1 percent overall and 0.2 percent minus food and energy costs. Markets were expecting an increase of 0.2 percent in both headline and core prices.

Dollar Falls on Weak Retail Sales

1/15/2008 6:33:57 AM