The dollar snapped a three-day skid after U.S. retail sales climbed the most in eight months, further evidence of a strengthening economy as the Federal Reserve considers its first interest-rate increase since 2006.

The greenback gained versus most major peers as the number of Americans filing for jobless benefits dipped to a three-week low before the central bank meets Dec. 16-17. The yen fell for the first time in four days as Prime Minister Shinzo Abes Liberal Democratic Party was poised for re-election this weekend. Norways krone slipped below 9 per euro for the first time since 2009 on an unexpected interest-rate cut. Russias ruble plunged to a record as emerging-market currencies fell.

The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major peers, rose 0.7 percent to 1,118.93 at 2:29 p.m. New York time, after falling to 1,108.21, the lowest since Dec. 2.

The yen weakened 1.3 percent to 119.33 per dollar after surging 3 percent the previous three days. Japans currency depreciated 0.7 percent to 147.75 per euro. The dollar rose 0.5 percent to $1.2382 per euro.

Source : Bloomberg