13 May 2005, 14:33  A series of interest rate rises has helped the dollar

U.S. retail sales in April surged 1.4 percent on the month, up from March's upwardly revised 0.4 percent increase and overshooting expectations for a 0.7 percent rise. It was the strongest result in seven months. "The data surprises have all been on the positive side for the U.S., and that's providing the dollar with near-term support," said Ian Stannard, currency strategist at BNP Paribas. A series of interest rate rises by the Federal Reserve has helped the dollar rebound against other major currencies after it tumbled 30 percent in the previous three years on worries about growing U.S. current account and budget deficits. The Fed has raised its funds rate by a quarter of a percentage point at each of eight consecutive meetings, bringing it to three percent. Its next meeting is in June.

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