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Dollar gains on solid retail sales, before Fed meeting

New York, The dollar index climbed to its highest level in a week on Friday after encouraging retail sales data for May eased fears that the U.S. economy is slowing sharply, ahead of the Federal Reserve's meeting next week, Reuters reported.

The Commerce Department said on Friday retail sales rose 0.5% last month, just slightly below economists expectations of a 0.6% gain. Data for April was revised up to show retail sales gaining 0.3%, instead of dropping 0.2% as previously reported.

The dollar has recovered in the last week from a weak start to June, as investors consider whether rate cut expectations have gotten too far-fetched relative to the data

The dollar has benefited to date from negative globalization news as the domestic side of the U.S. economy has looked sufficiently robust to deal with trade-related headwinds, Morgan Stanley analysts said in a report on Friday.

Source: Saudi Press Agency