(Repeats to more subsscribers, no changes)
* U.S. retail sales gain 0.6 percent in December
* Analysts see Fed raising rates 3 times in 2017
* Graphic: World FX rates in 2017 tmsnrt.rs/2egbfVh
By Sam Forgione
NEW YORK, Jan 13 The U.S. dollar gained against
the yen and was little changed against the euro on Friday,
rebounding from five-week lows touched against both currencies
in the prior session as U.S. retail sales data fueled
expectations that the Federal Reserve would hike interest rates
three times this year.
The Commerce Department said retail sales increased 0.6
percent in December, while November's retail sales were revised
up to show a 0.2 percent rise instead of the previously reported
0.1 percent gain.
The dollar rose as much as 0.6 percent against the yen to a
session high of 115.44 after slipping to a five-week low of
113.73 Thursday. The dollar had fallen on Wednesday and Thursday
on disappointment that U.S. President-elect Donald Trump did not
address pro-growth economic policies at his first news
conference since his Nov. 8 election victory.
The dollar index, which measures the greenback
against a basket of six major currencies, rose as much as 0.16
percent to 101.670 after touching a five-week low of 100.720
The index later turned mostly flat and was last at 101.390,
but was still set to finish the week down 0.8 percent to mark
its worst week since early November.
"We still have strong fundamental data out of the U.S.,"
said Jason Leinwand, founder and chief executive of FirstLine FX
in Randolph, New Jersey. Analysts said traders likely saw
Friday's data as an opportunity to buy the dollar after its dip
over the past two sessions.
"The market has gotten over (Trump's) news conference,"
Leinwand said. "So, the pullback really became an opportunity to
wait for the next set of data and reposition themselves."
The retail sales data also suggested the Fed would follow
through with its forecast in December for three projected rate
hikes this year, analysts said. The U.S. central bank's rate
hikes are expected to boost the dollar by driving investment
flows into the United States.
"We still think (the Fed is) hiking three times this year,"
said Win Thin, global head of emerging market currency strategy
at Brown Brothers Harriman in New York.
The euro was last up 0.1 percent at $1.0620 after touching a
session low of $1.0597 after the U.S. data. The euro remained
below a five-week high of $1.0684 touched Thursday.
(Reporting by Sam Forgione; additional reporting by Marc Jones
in London; Editing by David Gregorio)