The dollar got a lift on Tuesday from retail data showing the US economy expanding but gains were muted as investors awaited possibly market-moving congressional testimony by Federal Reserve chief Janet Yellen. The euro dropped and the British pound jumped 0.5 percent against the dollar on higher than forecast inflation data, which encouraged speculation Britain will raise interest rates sooner than other big economies.
The US dollar index, which weighs the greenback against six currencies, was up 0.03 percent, versus a 0.02 percent decline shortly before the US Commerce Department reported a 0.2 percent rise in American retail sales in June. The dollar stood at 101.64 yen, up 0.1 percent and very near the trading day's high. In European trade, the euro fell to a one-week low against the dollar, dropping to $1.3587, after Germany's ZEW survey of economic sentiment suggested a shaky start for Europe's largest economy in the third quarter. It last traded off 0.1 percent at $136.07. The euro was also down 0.3 percent lower against the yen at 138.24 yen and 0.6 percent weaker against the British pound.
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