Dollar up on yen following US economic data

The dollar climbed versus the Japanese yen on Tuesday on the back of US data that revealed retail sales in the country were up in July.

The figures were an indication that consumers may provide hope that the economy can expand during the third quarter, and it was also the first time retail sales had increased in four months. The greenback rose to a peak of 78.87 yen, the highest it has been since 18 July. It was last seen trading at around 78.84, a rise of 0.7 per cent since Monday.

Meanwhile, the euro also went up versus the yen, climbing to a high of 97.43 before slipping to 97.20 but still 0.7 per cent up on the day. The single currency went up to $1.2362 against the dollar following the data, but was last seen at around $1.2328, largely unchanged since Monday.

Separate data from the US revealed that producer prices in the country were higher in July but that there was a fall in energy prices. Western Union Business Solutions senior market analyst Joe Manimbo said that the figures are largely positive for the dollar and that the consumer spending data was good news. He added that this offers optimism for the third quarter.