(Adds new prices, analyst comment)
* Euro dips after ECB flags easing option
* Comments by Draghi, others seen capping any euro gain for
* U.S. retail sales up 1.1 percent in March
* Dollar up against ruble on geopolitical tensions
By Sam Forgione
NEW YORK, April 14 The dollar rose against the
euro on Monday after European Central Bank President Mario
Draghi signaled the bank would ease monetary policy further,
while strong U.S. retail sales data also boosted the dollar
against the yen.
Draghi said in Washington on Saturday that "a further
strengthening of the exchange rate would require further
stimulus". Bank of France chief Christian Noyer
hammered home the message saying: "The stronger the euro is, the
more accommodative policy is needed."
"(The ECB) is taking the value of the euro more seriously in
their approach to monetary policy," said Thierry Albert Wizman,
global interest rates and currencies strategist at Macquarie Ltd
in New York.
The statements marked the ECB's strongest signal yet that it
would act to head off further gains in the euro. Traders have
watched closely for signs of additional stimulus measures from
the ECB to prevent deflation.
ECB policymakers ramped up talks of more monetary easing on
March 25, but comments from the central bank's policymakers last
Monday curbed some expectations by suggesting more stimulus was
The euro retreated around half a percent from close to 2014
highs against the dollar, but was still up from its low for the
year of $1.3476, which it touched on Feb. 3. Wizman of Macquarie
said, despite Draghi's latest comments, skepticism that the ECB
would act suddenly kept the currency from falling further.
The dollar hit session highs against the euro, Japanese yen,
and Swiss franc after the Commerce Department said retail sales
increased 1.1 percent in March, marking the biggest gain in
1-1/2 years as receipts rose in nearly all categories.
The strong data detracted from the yen's safe-haven appeal.
The euro was last down 0.43 percent against the dollar at
$1.3823. The dollar was last up 0.05 percent against the yen at
101.69, and was up 0.3 percent against the Swiss franc to trade
at 0.8786 francs.
The U.S. dollar index, which measures the dollar
against six major currencies, was last up 0.32 percent.
The retail sales data helped support the dollar's gains,
although it had a limited impact after last week's release of
minutes from the Federal Reserve's latest policy meeting, which
suggested the central bank would remain dovish, said Brian
Dangerfield, currency strategist at RBS Securities in Stamford,
The dollar also advanced nearly 1 percent against the
Russian rouble on escalating geopolitical tensions
surrounding Russia and Ukraine. Pro-Russian separatists on
Monday ignored an ultimatum to leave occupied government
buildings in eastern Ukraine while another group of rebels
attacked a police headquarters.
The dollar was last up 0.83 percent against the ruble to
trade at 35.92 rubles.
"It's clear that geopolitical tension is returning to the
focus after a relative period of calm," said Dangerfield of RBS.
(Additional reporting by Patrick Graham in London; Editing by