FOREX-Dollar index climbs after U.S. retail sales show surprise rebound

    (Updates to late afternoon, adds bitcoin)
    * U.S. retail sales rise 0.7% in August
    * Weekly U.S. jobless claims slightly above expectations
    * Bitcoin down slightly

    By Caroline Valetkevitch
    NEW YORK, Sept 16 (Reuters) - The dollar rose and hit its highest level in nearly three weeks against a
basket of currencies on Thursday after data showed U.S. retail sales unexpectedly increased in August,
easing some concerns about a sharp slowdown in economic growth.
    The dollar index, which measures the U.S. currency against six others, added to gains following
the report and was last up 0.5% at 92.866. It hit its highest level since Aug. 27.
    Retail sales rose 0.7% last month, boosted in part by back-to-school shopping and child tax credit
payments, while data for July was revised down.
    A separate report showed U.S. initial claims for state unemployment benefits increased 20,000 to a
seasonally adjusted 332,000 for the week ended Sept. 11. Economists had forecast 330,000 applications for
the latest week.
    "If you look at the retail sales number, it's quite constructive even with the revisions, so we are
seeing the dollar benefit from that, particularly against the funding currencies like the euro, Swiss and
the yen," said Bipan Rai, North American head of FX strategy for CIBC Capital Markets in Toronto.
    The news could bolster investor expectations for next week's Federal Reserve policy meeting and how soon
the U.S central bank will start to taper stimulus.
    "It feels like whatever lingering concerns there were with the underlying economy ... that was kind of
washed away a little bit. So as we move towards the Fed next week, the evidence backs up the idea that we're
going to get a taper signal from the Fed at the meeting," he said.
    On Tuesday, the dollar index fell to a one-week low of 92.321 after a softer-than-expected inflation
report. Its low for the month was 91.941, on Sept. 3, when payrolls data disappointed.
    Investors are looking for clarity on the outlook for both tapering and interest rates at the Fed's
two-day policy meeting that ends next Wednesday.
    Tapering typically lifts the dollar as it suggests the Fed is one step closer to tighter monetary
policy.
    It also means the central bank will be buying fewer debt assets, in effect reducing the amount of
dollars in circulation, which in turn lifts the currency's value.
    The dollar also gained 0.3% to 109.70 yen, after sliding to a six-week low of 109.110 in the
previous session.
    The euro was 0.4% lower at $1.1766.
    The Swiss franc also fell against the dollar and was last at 0.9263 franc per dollar.
    Elsewhere, the Australian dollar was down 0.5% at $0.7296.
    Earlier, data showed the country's jobless rate unexpectedly fell to 4.5%, but the statistics bureau
said the change reflected a drop in the participation rate rather than a strengthening of the labor market.

    In cryptocurrencies, moves in bitcoin were relatively subdued. It was last down 0.9% at $47,711
. Ether changed hands at $3,589, down 0.7%.
    AMC Entertainment Holdings Inc (AMC) boss Adam Aron said in a tweet this week that the theater chain
would accept ether, bitcoin cash and litecoin alongside bitcoin for ticket purchases.
    ========================================================
    Currency bid prices at 3:21PM (1921 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct       High Bid    Low Bid
                                              Previous                   Change
                                              Session
 Dollar index                 92.8660        92.4620     +0.45%         3.206%        +92.9650    +92.4570
 Euro/Dollar                  $1.1766        $1.1816     -0.42%         -3.70%        +$1.1820    +$1.1751
 Dollar/Yen                   109.7000       109.3800    +0.31%         +6.19%        +109.8250   +109.2100
 Euro/Yen                     129.06         129.20      -0.11%         +1.69%        +129.3400   +128.6100
 Dollar/Swiss                 0.9263         0.9197      +0.73%         +4.72%        +0.9271     +0.9195
 Sterling/Dollar              $1.3793        $1.3843     -0.33%         +1.00%        +$1.3852    +$1.3765
 Dollar/Canadian              1.2675         1.2624      +0.41%         -0.46%        +1.2699     +1.2618
 Aussie/Dollar                $0.7296        $0.7334     -0.50%         -5.14%        +$0.7345    +$0.7274
 Euro/Swiss                   1.0898         1.0865      +0.30%         +0.84%        +1.0901     +1.0858
 Euro/Sterling                0.8528         0.8537      -0.11%         -4.58%        +0.8547     +0.8501
 NZ                           $0.7077        $0.7110     -0.45%         -1.44%        +$0.7140    +$0.7060
 Dollar/Dollar
 Dollar/Norway                8.6195         8.5755      +0.66%         +0.52%        +8.6470     +8.5725
 Euro/Norway                  10.1436        10.1265     +0.17%         -3.09%        +10.1720    +10.1130
 Dollar/Sweden                8.6237         8.5694      +0.10%         +5.21%        +8.6512     +8.5700
 Euro/Sweden                  10.1482        10.1380     +0.10%         +0.71%        +10.1710    +10.1360


 (Reporting by Caroline Valetkevitch
Additional reporting by Ritvik Carvalho in London and Kevin Buckland in Tokyo
Editing by Alexander Smith, Mark Potter and Jonathan Oatis)

Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.