# Dollar falls as US retail sales drop, September rate hike bets cool 2026-08-13T20:23:20+00:00 | World & Diplomacy | Indian Opinion Desk Corroboration: 1 independent outlet The dollar fell on Friday after U.S. retail sales unexpectedly dropped 0.6% in July, against economists' forecast of a 0.1% gain. Traders now price in just a 31% chance of a September rate hike, down from 35% after Thursday's flat producer price index data. The euro rose to $1.1585, its highest since June 17, and sterling reached $1.3561, its best since May 12. The Japanese yen strengthened 0.08% to 159.37 per dollar after recent U.S.-Japan intervention effects faded. Reuters reports the Bank of Japan is set to raise rates as soon as September, with more aggressive hikes under consideration. Oil prices climbed on renewed attacks on tankers and U.S.-Iran tensions. Friday's retail sales data follows July's surprise job losses and soft consumer price inflation, confirming an economic slowdown in the United States, according to Monex USA's Juan Perez. ## Coverage - livemint.com - livemint.com Tags: Federal Reserve, forex, Global markets, Producer Price Index, rate hike, US dollar Canonical: https://indianopinion.org/dollar-mixed-after-flat-us-producer-prices-rate-hike-bets-cool/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/dollar-mixed-after-flat-us-producer-prices-rate-hike-bets-cool/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.