Weaker Retail Sales Data Caps Dollar's Gains
Stock prices in the US were hovering on May 13 after the release of underwhelming economic data regarding retail sales in the world's largest economy.
Tuesday, May 13, 2014 - 00:00
One day after some of the major indices notched their all-time highs, the April data served as a "cooler" of sorts and the slippage in retail sales was linked with an apprehension amongst consumers to spend after severe, inclement weather in March. The S&P 500 closed at a record high of 1,896.65 on Monday, while the Dow achieved its strongest performance since January. Each of the index's 41 members climbed, which helped provide for a trading day to remember. Shortly after 10 a.m. this morning in New York, the Nasdaq has edged up 0.04 %, a lift of 1.85 points to 4,145.71; the S&P 500 is up 0.12 %, orf 2.33 points to 1,898.85, and the Dow has moderately gained 0.17 %, or 28.55 points to 16,724.02.
Yen Up and Down
But, despite the slow start to today’s trade session, the US dollar is rising in value against one of its top rivals, the yen. As the currency of the globe's third-largest economy, the yen has demonstrated an inconsistent performance as of late, which also is in line with internal efforts to regulate the monetary unit's performance and the drive to spur the country's economic engine. The Japan Times reports the dollar's drive against the yen on today is partially spurred by the Dow’s pushing to its record-high. That has prompted a strong effort to purchase the greenback as compared to the yen. But an official at one big Japanese bank told The Japanese Times that purchases of the greenback could be stronger and, if they were, the dollar's advance against the yen would be stronger.
Japan strives toward improvement
Three-plus years since an earthquake and subsequent tsunami hobbled the Japanese market, the nation has made a strong recovery. With an economy based on the international export of electronic devices and automobiles, the Pacific Rim nation also is immersed in an aggressive monetary easing policy since Prime Minister Shinzo Abe took office in December 2012.
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