Wednesday saw the world's reserve currency advance against its top rivals after the release of economic data showing retail sales in the U.S. last month were stronger than forecast, Bloomberg reports.
Retail sales advanced 1.1 percent in February from the month prior, which pushed past the gains of 0.2 percent from December 2012 to January. The sharp increase demonstrates prospects for the U.S. economy, the globe's largest, are brightening during the global recovery from the Great Recession.
"We only see definitive signs of recovery in the U.S. and nowhere else," managing partner Stephen Jen with SLJ Macro Partners LLP said during a Bloomberg-sponsored debate in London on Wednesday. "In the world where growth is decoupling and the U.S. is leading the world into a recovery, the dollar will perform quite well as risk capital is attracted into the U.S. It's very hard to short the dollar now."
Reuters reports the Wednesday trade session kicked off with the U.S. dollar slipping the Japanese yen but those losses reversed in the aftermath of the U.S. Commerce Department releasing the retail sales data.
The greenback also performed strongly against the common currency of the European Union, as propelled by the Commerce Department data.
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