[size=36]Dollar Holds on Gains as US Fears Slump[/size]
hold the dollar gains Friday, having calmed concerns about the world 's largest economy, thanks to the rise in retail sales in the United States, but traders who feel wary of giving great importance to the individual data given the growing expectations for risk.
The dollar is heading for a weekly gain against safe-haven currencies, such as the Japanese yen and Swiss franc, suggesting some breathing room for exhausted nerves, after recession fears and protests in Hong Kong caused a jolt in financial markets.
During Asian trading, the dollar extended gains briefly, the yen weakened as Japanese stocks erased losses in early trading and as US Treasury yields rose slightly.
But the move was partially shattered, suggesting weak trading due to the summer holiday season.
Against a basket of six major currencies, the dollar index rose to 98.218. Since hitting a three-week low on August 9, the dollar index has recovered about 1 percent.
Data showing that US consumers continued to spend in July provided investors with relief after the US bond market issued recession warnings.
The dollar was little changed at 106.18 yen in Asian trade, after rising 0.2 percent on Thursday.
In the week, the greenback gained 0.5 percent against its Japanese counterpart, the biggest gain since the week ended July 26.
The dollar gained 0.3 percent to 0.9787 Swiss francs and is headed for a 0.6 percent gain on a weekly basis.
The pound rose slightly and is heading towards its first weekly gain since mid-July, as positive retail sales and consumer price data showed that the UK economy is in better shape than some investors feared.
The pound was trading at $ 1.2088, near a one-week high of 1.2150.