US Retail Sales growth of 0.5% in April and Federal Reserve leadership changes bolster expectations for prolonged high interest rates.
The US Dollar Index (DXY) climbed above 99.00 for the fifth straight session, trading near 99.10 in Asian hours. The move follows April’s 0.5% month-over-month rise in US Retail Sales, signaling resilient consumer demand despite elevated borrowing costs.
Prior to the release, March’s retail sales had stagnated at 0.0%, while economists had forecast a 0.4% rebound. The stronger-than-expected print reinforces expectations that the Federal Reserve may delay rate cuts or consider further hikes amid persistent inflation.
The dollar also gained support from shifts in Fed leadership, including the resignation of Stephen Miran and the anticipated appointment of Kevin Warsh as Fed Chair. Geopolitical tensions in the Middle East and diplomatic efforts to ease conflicts have added to the dollar’s strength.