Dollar Loses Ground Against Some Major Counterparts

(RTTNews) - The U.S. dollar shed ground against its major rivals on Wednesday, as bond yields fell amid expectations the Federal Reserve will slow the pace of interest rate hikes.

Traders also digested a slew of economic data including a Commerce Department report showing a steep drop in U.S. retail sales in the month of December.

The Commerce Department said retail sales tumbled by 1.1% in December after slumping by a revised 1% in November. Economists had expected retail sales to decrease by 0.8% compared to the 0.6% drop originally reported for the previous month.

A separate report released by the Federal Reserve showing industrial production in the U.S. decreased by much more than expected in the month of December.

The Fed said industrial production slid by 0.7% in December after falling by a revised 0.6% in November. Economists had expected industrial production to edge down by 0.1% compared to the 0.2% dip originally reported for the previous month.

The Labor Department said its producer price index for final demand declined by 0.5% in December after inching up by a revised 0.2% in November. Economists had expected producer prices to edge down by 0.1% compared to the 0.3% increase originally reported for the previous month.

The report also showed the annual rate of producer price growth slowed to 6.2% in December from 7.3% in November. The year-over-year growth was expected to slow to 6.8%.

The dollar index, which dropped to 101.53, recovered to 102.40 as the day progressed.

Against the Euro, the dollar is down slightly at 1.0795.

The dollar has weakened to 1.2344 against Pound Sterling, down nearly 0.5% from the previous close of 1.2287.

Against the Japanese currency, the dollar firmed to 128.87 yen from 128.14 yen.

The dollar is stronger against the Aussie at 0.6939, gaining from 0.6986.

Against Swiss franc, the dollar dropped to CHF 0.9163 from CHF 0.9222. The Loonie weakened to 1.3492 a dollar.