Reply #43: Dollar Up on Renewed Economic Optimism

[Freddie Stubbs]

1hour, 48 minutes ago Add Business - Reuters to My Yahoo!


By Gertrude Chavez

NEW YORK (Reuters) - The dollar posted sharp gains against major currencies on Tuesday after robust U.S. economic numbers signaled the U.S. recovery is on a firmer footing.

U.S. retail sales climbed 1.8 percent in March, easily topping economists' forecasts for a rise of 0.6 percent.

In addition, February U.S. business inventories rose 0.7 percent, higher than expectations and signaling stronger-than-expected economic growth, analysts said.

"The pervasive dollar pessimism that characterized trading in the fourth quarter of 2003 over a slowdown in foreign investment has given way to dollar optimism over renewed signs of above-trend growth," said Michael Woolfolk, senior currency strategist at Bank of New York.

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