NEW YORK: The US dollar rose on Tuesday after data showed retail sales in April were lower than expected but suggested a firm underlying trend, with investors remaining skittish about the debt ceiling issue.

US President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy will meet later on Tuesday to try to iron out a deal to raise the debt ceiling, with a little more than two weeks to go before the US government could run short of money to pay its bills.

McCarthy on Tuesday told reporters that his party, which controls the chamber by a 222-213 margin, would only agree to a deal that cuts spending.

“There is maybe some potential news on the debt ceiling today. Chances are that this is going to be pushed closer to the deadline, which is early next month,” said Vassili Serebriakov, FX strategist at UBS.

“So the market should remain in a range. I don’t really see any directional impulse here.”

The dollar index was up 0.2% on the day at 102.59. Against the yen, the greenback rose 0.4% to 136.62 yen.

The euro slipped 0.1% versus the dollar to $1.0865, while sterling fell 0.3% to $1.2490 .

The greenback earlier rose after US retail sales rose less than expected in April, but details showed that the underlying trend remained solid. This suggested that consumer spending likely remained strong early in the second quarter.