Dollar Falls as Surprise Drop in Retail Sales Triggers Economic Worries

The US dollar fell on Friday after data showed a surprise decline in retail sales for July. The drop of 0.6% was unexpected, as economists had forecasted a 0.1% gain.

According to Juan Perez, director of trading at Monex USA, the poor consumption numbers indicate an economic slowdown in the US. This comes after softer-than-expected consumer and producer price inflation data this week tempered expectations for a Federal Reserve rate hike in September.

The dollar index fell 0.33% to 99.59, with the euro up 0.36% at $1.1568. The Japanese yen strengthened 0.32% against the greenback to 158.97 per dollar.