The U.S. dollar index fluctuated on Wednesday after the release of mixed economic data and as after the United States said it would delay imposing tariffs on auto imports.
The dollar index, which tracks the green currency’s movements versus a basket of major currencies, traded at 97.36 after hitting a high of 97.50 and a low of 97.22.
Economic data showed today a rise in the U.S. Empire State Industrial Production Index to the highest level in 6 months, while retail sales showed an unexpected fall in April.
US retail trade dropped 0.2 percent in April from a month earlier, after an upwardly revised 1.7 % growth in March, which was the biggest climb in sales for one year and half.
Retail sales were dragged down by declines in sales of motor vehicles, clothes, appliances and building materials.
It is worth mentioning that retail sales (MoM) in the United States have averaged 0.35 percent from 1992 until 2019, reaching the highest rate of 6.70% in October 2001 and the lowest record was -3.90% in November 2008.
However, retailers are expecting a further hit as Trump follow through on his threat to impose tariffs of 25% on almost all remaining Chinese imports, which would likely force the Americans to find higher prices. The idea that the U.S.-China trade dispute could turn into something more is starting to become reality.
Separately, President Donald Trump is planning to
delay the imposition of 25 percent punitive duties on imported autos,
according to industry sources.