The dollar rose against most major peers as investors speculate whether the Federal Reserve is moving closer to raising interest rates with the U.S. economy strengthening while inflation persists below the central bank’s target.
The pound rose versus the dollar, extending a gain from the end of last week, as a gauge of retail sales exceeded analysts’ forecasts and trading patterns suggested the U.K. currency was due to halt its downward trend.
Global central bankers led by Federal Reserve officials said they are still a long way off from tightening monetary policy, seeking to calm investors unnerved by the Fed’s push toward curtailing bond-buying.
The dollar declined to the lowest level in more than a week against the euro after U.S. employers added fewer jobs in March than forecast, fueling speculation growth in the world’s biggest economy is slowing.
The yen fell to the weakest level since April 2011 versus the dollar after Shinzo Abe’s Liberal Democratic Party won Japanese elections yesterday, giving him a mandate to act on pledges of expanded monetary stimulus.