US dollar tumbles after weak data

NEW YORK: The dollar dropped across the board on Wednesday after a batch of weak data that suggested the world’s largest economy is finally slowing down amid a slew of big rate hikes by the Federal Reserve.

Wednesday’s economic reports reinforced expectations that the Fed will continue to reduce its tightening pace in upcoming meetings.

The sell-off in the dollar came after the Bank of Japan maintained ultra-low interest rates. The yen initially gained sharply, but recovered on expectations for tighter policy in the coming months and after the dollar sold off following poor economic data.

Data showed that US retail sales fell more than expected in December, pulled down by declines in purchases of motor vehicles and a range of other goods. They fell 1.1% last month. Data for November was revised to show sales dropping 1.0% instead of 0.6% as previously reported.