(Adds comments, updates prices)
* U.S. consumer sentiment beats expectations
* Dollar falls against yen on Japan retail sales
By Sam Forgione
NEW YORK, June 27 The U.S. dollar slipped on
Friday against a basket of major currencies to post a second
week of losses after positive data on consumer sentiment failed
to boost expectations for a rise in interest rates any time
The Thomson Reuters/University of Michigan's final June
reading on the overall index on consumer sentiment came in at
82.5, up from 81.9 the month before and above the median
forecast of 82.0 among economists polled by Reuters.
Analysts said the upbeat consumer sentiment data left
traders cold since it failed to dispel worries about the U.S.
economy after data on Thursday showed slightly
weaker-than-expected data on consumer spending in May.
"The data is not shaking anybody's expectations in terms of
the pace of tightening from the Fed," said Sebastien Galy,
currency strategist at Societe Generale in New York, in
reference to the Federal Reserve's timeline for raising interest
rates from rock-bottom levels.
The U.S. dollar index, which measures the dollar
against a basket of six major currencies, was last down 0.25
percent at 80.022. The euro was last up 0.26 percent
against the dollar at $1.3648.
The dollar was last down 0.27 percent against the yen
at 101.44 yen. The dollar was down 0.3 percent against the Swiss
franc to trade at 0.89095 franc. The New Zealand dollar
extended gains on traders' appetite for higher-yielding
currencies and was last up 0.16 percent against the dollar to
trade at $0.8775.
Analysts said the yen gained following better-than-expected
Japanese retail sales data, which diminished concerns of further
monetary stimulus from the Bank of Japan.
The government data showed Japanese retail sales fell 0.4
percent in May from a year earlier, which was better than
economists' median estimate for a 1.8 percent drop in a Reuters
poll. The data came after the government raised the national
sales tax to 8 percent from 5 percent on April 1.
"Indications are that maybe the economy is weathering this
consumption tax pretty well so far," said Win Thin, head of
emerging markets currency strategy with Brown Brothers Harriman
in New York.
Traders looked ahead to the U.S. government's non-farm
payrolls report for June, due for release on July 3. The
government is expected to have added 210,000 jobs in June, down
slightly from the prior month, according to a Reuters poll of
The dollar continued to slide despite a slight increase in
benchmark U.S. government bond yields. Benchmark 10-year U.S.
Treasury notes were last down 3/32 in price to yield
(Reporting by Sam Forgione; Additional reporting by Patrick
Graham in London; Editing by James Dalgleish and Chris Reese)