The dollar dropped to a one-week low after government reports showed retail sales and producer prices in July were weaker than forecast, reducing the case for the Federal Reserve to raise interest rates. The greenback fell against most of its major peers after retails sales were unchanged while wholesale prices in the U.S. unexpectedly fell in July by the most in almost a year. "We’re seeing broad dollar weakness across the board on the heels of this retail sales number,"said Bipan Rai, senior foreign-exchange and macro strategist at Canadian Imperial Bank of Commerce in Toronto. "This is the the first retail sales result that we have for Q3, it certainly doesn’t help for hopes of a rebound following a weak Q2 result from a few weeks back." The Bloomberg Dollar Spot Index, which tracks the currency against a group of major peers, dropped 0.4 percent as of 8:43 a.m. in New York. The greenback lost 0.7 percent to $1.1210 per euro, reaching the weakest level since Aug. 3, and sank 0.7 percent to 101.25 yen.

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