NEW YORK: The dollar fell on Friday against the euro and yen, reversing earlier gains, after US retail sales rose less than expected in August in the latest sign that economic growth slowed in the third quarter.
Retail sales increased 0.2 percent last month as Americans bought automobiles, furniture, electronics and appliances, the Commerce Department said on Friday. Analysts had been expecting a 0.4 percent rise for the month.
The report is one of the last before the Fed meets next week, when more clarity on its 'tapering' plans is expected.
Earlier the dollar was higher after a Japanese newspaper reported former Treasury Secretary Lawrence Summers would soon be named to head the Federal Reserve. The White House said US President Barack Obama had yet to make a decision on the Fed nomination.
"It's a little piece of data that says maybe we are not ready to start slowing (asset) purchases and that's bad for the dollar," said Andrew Dilz, foreign currency trader at Tempus Inc in Washington of the retail sales report.
The dollar was last at 81.484, down from Thursday's close of 81.507, though off the two-week low of 81.356 set on Thursday.
The euro was up 0.1 percent at $1.3304.
Separately, the Labor Department reported US producer prices rose in August as energy costs rebounded, but underlying inflation remained tame..
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