Dollar Dips as Retail Sales Decline Hints at Economic Slowdown

The US dollar weakened after data revealed that retail sales in the country unexpectedly declined by 0.6% in July, prompting traders to reevaluate their expectations of a Federal Reserve interest rate hike.

This decline comes on top of softer-than-expected consumer and producer price inflation data this week, which has already tempered hopes for a September 15-16 meeting rate increase.

Economist Juan Perez noted that the evidence points to an economic slowdown in the US, with poor consumption being a major concern.