* Dollar retreats from a one-month high marked on upbeat
* Euro recovers from a five-week low
By Yuzuha Oka
TOKYO, Feb 16 The dollar took a breather on
Thursday after climbing to a one-month high as a run of upbeat
U.S. economic data rekindled expectations of an early rate hike
by the Federal Reserve.
The dollar index touched 101.76 on Wednesday, a peak
unseen since Jan. 12, on the wake of better-than-expected U.S.
inflation and retail sales data before retreating to 100.94 on
U.S. consumer prices recorded their biggest gain in nearly
four years, jumping 0.6 percent in January. Retail sales also
outpaced expectations, increasing 0.4 percent last month
compared to the analysts' poll of 0.1 percent.
But some analysts also noted that the data may not as strong
as it appears.
"Retail sales seemed to have been boosted by higher prices
rather than an increase in the real consumption," said Shin
Kadota, senior forex strategist at Barclays.
"Investors also took profit as the dollar was trading high
this week," added Kadota. The dollar had a 10-session winning
streak until Tuesday, since the start of February.
Fed Chair Janet Yellen offered no additional insight on the
timing of the central bank's next rate hike in her second day of
economic testimony before Congress on Wednesday.
On Tuesday, Yellen hinted more rate hikes were on the way as
the jobs market has improved and inflation has shown signs of
nearing the Fed's two percent goal.
Not all U.S. data out on Wednesday were encouraging with
industrial output and a gauge on home builder sentiment taking
The euro edged up 0.2 percent at $1.0616, recovering from a
five-week trough of $1.052 touched on Wednesday.
The dollar hovered near a two-week high versus the yen, last
standing at 114.11 yen. The greenback fetched 114.95 yen
Elsewhere, the Australian dollar held on to slim gains after
a slightly better-than-expected reading in January employment
The Australian dollar traded at $0.7722, up 0.1
percent on the day.
(Reporting by Yuzuha Oka; Editing by Eric Meijer)