Reuters

The dollar rose to its highest level against a basket of major currencies in nearly three weeks on Tuesday after U.S. retail sales data showed the largest gain in seven months.

U.S. retail sales recorded their biggest increase in seven months in July as consumers boosted purchases of motor vehicles and lifted discretionary spending, suggesting the economy continued to gain momentum early in the third quarter.

British consumer price inflation unexpectedly held steady last month, bucking market expectations for a renewed rise, after fuel prices fell and the effect of the pound’s tumble after last year’s Brexit vote started to fade.

Asian shares rallied and the dollar firmed on Tuesday after North Korea’s leader signaled that he would delay plans to fire a missile near Guam, further easing tensions and prompting investors to move back into riskier assets.

The dollar edged higher against the yen on Tuesday, pulling away from a recent four-month low, as concerns over tensions between the United States and North Korea eased for now, supporting risk appetite.

Gold edged lower early on Tuesday, weighed down by a steady U.S. dollar and firmer Asian stocks as geopolitical tensions between the United States and North Korea appeared to ease.

Gold’s rally in recent weeks may be its first boosted by Twitter, but for the gains to sustain it will likely take more than just the ramping up of global geopolitical tensions amid bellicose tweets from U.S. President Donald Trump.

The Canadian dollar weakened on Monday against its U.S. counterpart as oil prices fell and the greenback posted broader gains, while investors awaited the start of renegotiations of the NAFTA trade pact this week.

The Swiss franc posted its biggest daily drop against the U.S. dollar in nearly three weeks on Monday as investor concern over geopolitical risks eased and Japan posted solid economic data.

Gold dropped by half a percentage point on Monday, retreating from last week’s two-month highs under pressure from a strengthening dollar and a slight easing of tensions between the United States and North Korea.