The dollar clawed back some of this week’s losses as concern over China’s devaluation ebbed and a rebound in retail sales shifted focus back to the case for higher U.S. interest rates. Crude oil extended its drop at a six-year low.
The greenback was steady at $1.1158 per euro by 8:56 a.m. in Tokyo after rallying Thursday to halt the common currency’s longest rally since April. New Zealand’s dollar fell after retail sales data, as the offshore yuan rose. While Asian index futures were mixed in recent trading, Standard & Poor’s 500 Index futures lost 0.1 percent after the gauge fluctuated. U.S. oil fell to $42 a barrel, set for a seventh weekly decline.
China’s pledge to curb excessive volatility in the currency and growth in U.S. retail sales reassured investors amid concern the steepest drop in the yuan since 1996 will unsettle global markets and impact the timeline for Federal Reserve policy tightening. Concern the devaluation signals a Chinese economy in trouble continues to dog crude, coupling with evidence of rising output to fuel anxiety over a glut. Taiwan reports on growth Friday, while South Korea is closed.