NEW YORK: The dollar gained on Tuesday after data showed that US retail sales rose more than expected in September, with investors also focused on a busy week of speeches by Federal Reserve officials.

Retail sales rose 0.7% last month as households boosted purchases of motor vehicles and spent more at restaurants and bars.

The dollar index was last up 0.16% at 106.40. It is holding below the 107.34 level reached on Oct. 3, the highest since November 2022.

The euro fell 0.11% to $1.0548. It is up from $1.0448 on Oct. 3, the lowest since December 2022.

Investors are focused on speeches this week by Fed officials, including Fed Chair Jerome Powell on Thursday, for further clues about interest rate policy.

The yen briefly surged but quickly trimmed gains after a media report that the Bank of Japan was considering raising its core CPI forecast for the 2023 and 2024 fiscal years but maintaining the inflation outlook for 2025.

The yen was last 149.77 per dollar, having strengthened to 148.75 after the report, as analysts said the knee-jerk reaction to higher inflation forecasts in the near term was negated by the longer-term projections.

Investors were also on edge for any signs of intervention by the Japanese authorities as the yen traded close to the 150 level that prompted officials to step in to buy the currency in 2022.

The Canadian dollar weakened after Canada’s annual inflation rate unexpectedly slowed to 3.8% in September and underlying core measures also eased, prompting markets and analysts to trim bets for another interest rate hike next week. The US dollar was last up 0.40% at 1.366 Canadian dollars.

Sterling was last at $1.2147, down 0.56% on the day, after jumping 0.6% on Monday.