Dollar retreats from 3-week high on profit taking

The US dollar fell against a majority of rivals on Friday, and gave up its 3-week high on profit-taking, but remains on track for the second weekly gain, after strong US economic data boosted the chances of tightening the US monetary policy.

The dollar index fell more than 0.1% to 92.76 points, after opening at 92.87 points, and hit a high of 92.93 points.

The US dollar index gained 0.4% yesterday, and hit a 3-week high at 92.96 points, after strong US retail sales data.

The greenback gained 0.2% so far this week, to head for the second straight weekly gain.

In the US, retail sales rose 0.7% in August, beating estimates of a 0.7% decline, while industrial activities improved in Philadelphian during September.

A survey by the US Federal Reserve also showed that Philadelphia's industrial production increased in September thanks to easing lockdown restrictions.

The data bolstered the case for a reduction in US bonds purchases before the year's end in a step that aims at raising US interest rates.