Dollar steadies as strong data offsets lower yields

The dollar index was little changed on Thursday as traders balanced bullish data showing U.S. retail sales gained the most in 10 months in March, while U.S. Treasury yields continued their drop.

Retail sales rose 9.8% last month, higher than analysts’ expectations for a 5.9% increase. However, the dollar’s strength slid as Treasury yields fell to one-month lows. 

The dollar index plunged to a one-month low of 91.487 on Thursday. It recovered to 91.608, unchanged on the day.

The euro slid 0.04% to $1.1975. It hit a six-week high of $1.1994 earlier on Thursday. The dollar lost 0.23% to 108.65 against the Japanese yen.

The dollar has been on the defensive this month as Treasury yields steadied below one-year highs hit last month. Yields dropped as the Federal Reserve reiterated holding rates near zero for the next few years. 

The risk-sensitive Aussie climbed 0.42% to $0.7755 on Thursday.