Investing.com - The dollar rose against the other major currencies on Friday as expectations that the Federal Reserve will raise U.S. interest rates next month continued to underpin investor demand for the greenback.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.33% to 98.90 in late trade.
The index ended the week down 0.16% after a rally to Tuesday’s seven-month peaks of 99.59 prompted investors to take profits early in the week.
The dollar shrugged off reports showing that U.S. retail sales rose less than expected in October, while producer prices fell.
The Commerce Department said retail sales edged up just 0.1% last month after remaining flat in the preceding two months.
Separately, the Labor Department said the producer price index fell 0.4% last month after a 0.5% decline in September.
The data was not seen as likely to deter the Fed from hiking rates in December in the wake of the robust U.S. jobs report for October.
Another report showed that U.S. consumer sentiment improved this month.
The University of Michigan said its consumer sentiment index rose to 93.1 from a reading of 90.0 in October.
The dollar remained broadly supported after Fed Vice-Chair Stanly Fischer said Thursday that it “may be appropriate” for the Fed to begin raising rates next month.
The euro was lower, with EUR/USD down 0.39% to 1.0773 in late trade.
The dollar was little changed against the yen late Friday, with USD/JPY at 122.6, off Monday’s two-and-a-half month highs of 123.59.
The Swiss franc was lower against the dollar, with USD/CHF up 0.56% to 1.0058.
In the week ahead, investors will be turning their attention to Wednesday’s minutes of the Fed’s latest policy meeting for fresh indications on the prospects of a December rate hike.
Preliminary data on Japanese third quarter growth and a monetary policy announcement by the Bank of Japan will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 16
Japan is to release preliminary data on third quarter growth.
The euro zone is to publish revised data on consumer inflation.
European Central Bank President Mario Draghi is to speak at an event in Madrid.
Canada is to publish data on manufacturing sales and foreign investment.
The U.S. is to release data on manufacturing activity in the New York region.
Tuesday, November 17
The Reserve Bank of Australia is to publish the minutes of its latest monetary policy meeting, giving investors insight into how officials view the economy and their policy options.
New Zealand is to produce data on inflation expectations.
The U.K. is to release data on consumer price inflation.
In the euro zone, the ZEW Institute is to report on German economic sentiment.
The U.S. is to release reports on inflation and industrial production.
Wednesday, November 18
Atlanta Fed President Dennis Lockhart is to speak at an event in New York.
The U.S. is to release data on building permits and housing starts.
Later in the day, the Fed is to publish the minutes of its latest policy setting meeting.
Thursday, November 19
The Bank of Japan is to announce its benchmark interest rate and publish its rate statement, which outlines economic conditions and the factors affecting the monetary policy decision.
The U.K. is to release data on retail sales.
The ECB is to publish the minutes of its latest meeting.
The U.S. is to release the weekly report on initial jobless claims and data on manufacturing activity in the Philadelphia region.
Friday, November 20
ECB head Mario Draghi is to speak at an event in Frankfurt.
The U.K. is to release data on public sector borrowing.
Canada is to round up the week with data on retail sales and consumer inflation.