The dollar rose to an almost one- month high versus the yen as Treasury yields rallied after U.S. retail sales exceeded forecasts. The Japanese currency weakened at least 0.6 percent against its 16 major counterparts as stocks rallied and minutes of the Bank of Japan (8301)’s July meeting signaled policy makers are considering expanding stimulus. Canada’s dollar and Mexico’s peso gained against the greenback. Sweden’s krona advanced as Swedish industrial production in June rose more than analysts estimated. “The U.S. data on the surface is stronger than expected and is leading the yield curve to rise and the dollar to strengthen,� said Sebastien Galy, a senior foreign-exchange strategist at Societe Generale SA in New York. “We live in a fixed-income universe and you can see the reaction particularly in dollar-yen.� The dollar rose 0.7 percent to 78.90 yen per dollar at 9:28 a.m. in New York. It touched 78.91, the strongest since July 18. The yen fell 0.8 percent to 97.34 versus the euro. The U.S. currency was 0.1 percent weaker against the euro at $1.2340. The benchmark 10-year yield rose five basis points, or 0.05 percentage point, to 1.72 percent, according to Bloomberg Bond Trader prices, almost the highest since May. The 0.8 percent retail sales advance, the first gain in four months, followed a 0.7 percent decrease in June that was weaker than first reported, Commerce Department figures showed today in Washington. Economists projected a 0.3 percent rise, according to the median forecast in a Bloomberg survey. To contact the reporter on this story: Allison Bennett in New York at abennett23@bloomberg.net To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

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