Dollar rises near 3-week high ahead of US retail sales data

The US dollar rose against a basket of major currencies on Friday,  resuming its gains after pausing yesterday, near a 3-week high after President-elect Joe Biden unveiled a huge stimulus plan, and ahead of key US data, such as the monthly retail sales reading.

The dollar index rose more than 0.3% to 90.50 points, after opening at 90.22 points, with an intraday low of 90.22 points.

The greenback fell 0.1% yesterday, after Federal Reserve Chairman Powell's comments.

Federal Reserve Chairman Jerome Powell said yesterday that the bank will not raise the interest rate in no time soon, adding that the US economy is still far from the Fed's targets, and there's no reason to change the highly adaptive approach of the bank until the economy improves.

The dollar index jumped this week to its 3-week high of 90.73 points,  the 10-year treasury yields hit a 10-month peak at 1.184%.

The US President-Elect Joe Biden, six days before his term at the White House kicks off, promised a $1.9 trillion stimulus package to boost the economy from the Covid crisis.

Investors await key data on the US retail sales during December, which accounts for about 70% of the total US GDP. 

At 13:30 GMT, monthly retail sales reading is expected up 0%, compared to a drop by 1.1% in November, and the core reading is expected to drop 0.1% from a drop by 0.9%.