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US retail sales beat estimates, dollar strengthens

US retail sales beat estimates, dollar strengthens

Retail sales in the United States saw a more than forecast rise in June, the Commerce Department data released on Friday showed, helping the U.S. dollar to strengthen.

The volume of retail sales soared 0.4 percent last month, compared to forecasts of 0.1 percent advance, while the previous reading was revised lower to 0.4 percent increase from 0.5 percent surge. From a year ago, retail sales were 3.2 percent up.

The soar in retail sales should be interpreted as improvement in consumer spending, which should eventually support second-quarter growth.

Core retail sales, which excludes automobiles, gasoline, building materials and food services, edged up 0.4 percent from a downwardly revised of 0.4 percent increase. That came above forecasts of 0.1 percent soar.

The dollar index strengthened to 96.96, extending its rise for a second straight session, as of 13:15 GMT.

The green currency has strengthened as the upbeat data, along with June’s strong jobs report, allayed expectations the Fed would cut interest rates at the of this month.

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