NEW YORK, Jan 15 (Reuters) - The dollar pared losses against the Japanese yen and briefly extended gains versus the euro after U.S. data gauging inflation and consumer spending.
The dollar last traded at 88.58 yen, down 1 percent on the day. It had been trading at 88.52 before the release of the data.
The euro briefly fell, but later gained after the data. The euro last traded at $1.3328, down 0.4 percent on the day. It had been trading at $1.3324 before the release of the data.
U.S. producer prices fell in December for the third straight month as food prices declined by the most in over 1 1/2 years, while a measure of underlying prices pointed to minimal inflation pressures in the economy.
U.S. retail sales rose more than expected in December as Americans shrugged off the threat of higher taxes and bought automobiles and a range of other goods, suggesting momentum in consumer spending as the year ended.