During European morning trade, the dollar rebounded against the yen, with USD/JPY climbing 0.44% to 96.67, after briefly falling to lows of 95.93 when data showed that Japan’s economy expanded at a slower-than-forecast rate in the second quarter.
Official data released Monday showed that Japan’s economy expanded by 0.6% in the second quarter and grew by 2.6% on a year-over-year basis. Economists had forecast growth of 0.9% for the quarter.
The dollar firmed up amid expectations that a strong U.S. retail sales figure for July would point to an early conclusion to the Fed’s USD85 billion-a-month asset purchase program.
Elsewhere, the dollar pushed higher against sterling, with GBP/USD down 0.26% to 1.5466.
The dollar also gained ground against the euro, with EUR/USD losing 0.31% to trade at 1.3302.
The dollar rose to session highs against the Swiss franc, with USD/CHF climbing 0.40% to 0.9260.
The Swiss franc was little changed after official data showed that retail sales in Switzerland rose 2.3% from a year earlier in June. Economists had expected retail sales to remain unchanged from May's figure of 1.8%.
The greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD down 0.49% to 0.9152, NZD/USD shedding 0.46% to trade at 0.7999 and USD/CAD rising 0.26% to 1.0314.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was 0.32% higher at 81.42.