Dollar rises on euro ahead of US retail sales

[NEW YORK] The dollar on Monday again advanced against the euro ahead of key US data that could affect the outlook for Federal Reserve monetary policy.

Tuesday's government report on US retail sales for March will be closely watched as "a key litmus test of the US recovery thesis," said Boris Schlossberg, managing director of BK Asset Management.

A strong US retail sales report could bolster confidence the Fed will move more quickly to raise near-zero interest rates.

"But if the consumer does not come through - the dollar rally could run into the brick wall of reality," Mr Schlossberg said.

Monday marked the sixth advance in a row for the greenback against the shared currency. The euro fell to US$1.0571 around 2100 GMT from US$1.0599 late Friday.

Analysts will be watching US inflation data this week, in addition to retail sales, said Joe Manimbo, senior market analyst at Western Union Business Solutions.

"Positive outcomes that depict the US economy finding its footing after the frosty winter could soon see the greenback soar to fresh multiyear peaks," Manimbo said.

AFP