(Reformats link at end of story, no change to text)
* U.S. retail sales post healthy gains
* Expectations of December Fed hike lift greenback
* China inflation numbers see yen under pressure
By Gertrude Chavez-Dreyfuss
NEW YORK, Oct 14 The dollar rose on Friday, on
track for its largest weekly gain in more than seven months
against the euro, after strong U.S. retail sales and producer
prices data for September reinforced expectations the Federal
Reserve would raise interest rates in December.
The safe-haven yen and Swiss franc fell versus
the dollar after risk sentiment got a boost from Chinese data
showing producer prices rose for the first time in nearly five
years. That boded well for the global economy which has been
battling the threat of deflation in recent months.
The dollar index, which tracks the greenback against a
basket of six major currencies, added 0.3 percent to 97.788
. It was up 1.2 percent for the week and 2.4 percent for
the month so far.
The U.S. retail sales data, which showed a 0.6 percent rise
last month after declining 0.2 percent in August, supported the
dollar's gains. Other data on Friday suggested a pickup in
inflation, with producer prices rising broadly last month to
record their biggest year-on-year increase since December 2014.
"Following a disappointing August, Fed Chair Janet Yellen
will be pleased to see retail sales rebound strongly in
September," said Dennis de Jong, managing director at UFX.com in
Limassol, Cyprus. "Observers are increasingly confident that
December will finally bring the long-awaited interest rate
The minutes of the latest Fed meeting in September, released
on Wednesday, prompted investors to raise their bets of a U.S.
rate increase in December. Markets are now pricing in around a
70 percent chance that the Fed will hike then.
Against the yen, the dollar rose 0.5 percent to 104.28
. It was up 1.2 percent for the week.
The dollar did trim gains after a report showed that
consumer sentiment, as gauged by the University of Michigan,
fell this month to 87.9, the lowest since September 2015.
The euro fell 0.4 percent to $1.1015, heading back
toward its Thursday's low of $1.0982, its weakest level since
late July. It was down 1.6 percent for the week, its worst
weekly performance since late February.
Later on Friday Yellen will address an economics conference
(Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by
Anirban Nag in London; Editing by W Simon)