Investing.com - The euro rallied against the broadly weaker dollar on Tuesday, rebounding from one-month lows after U.S. data on retail sales fell short of market expectations.
EUR/USD was up 1.06% to 1.0678, after falling as low as 1.0532 earlier.
The Commerce Department reported that U.S. retail sales jumped 0.9% in March, the largest gain in over a year. But this was still short of the consensus forecast for a 1.0% increase.
The data dampened expectations for a midyear rate hike by the Federal Reserve, sending the greenback lower against a basket of currencies.
In a separate report the Commerce Department said U.S. producer prices rose 0.2% in March, the first gain in five months and in line with forecasts.
On a year-over-year basis, producer prices were down 0.8% in March, also in line with forecasts.
The euro was boosted after the International Monetary Fund raised its growth forecast for the euro zone in 2015 to 1.5%, up from 1.2% previously. The fund believes that the weaker euro and the fall in oil prices will bolster growth.
The IMF left its forecast for global growth this year unchanged at 3.5%, but warned that the recovery is "moderate and uneven".
Elsewhere, the dollar was also weaker against the yen and the pound, with USD/JPY down 0.78% to 119.18, the lowest since April 6. GBP/USD added 0.78% to trade at 1.4789.
Sterling had weakened earlier Tuesday after data showing that the U.K. avoided slipping into negative inflation in March, but consumer prices remained unchanged at a record low zero last month due to cheaper food and energy costs.
The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was down 1.16% to 98.6.
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