* U.S. retail sales data boosts greenback
* Norway's crown falls after Norges Bank flags uncertainty
(New throughout, updates rates and adds comments post-U.S.
market open; new byline, changes dateline, previous LONDON)
By Saqib Iqbal Ahmed
NEW YORK, Aug 15 (Reuters) - The dollar recovered from early
weakness against the safe-haven yen as better-than-expected U.S.
retail sales data on Thursday eased fears that the U.S. economy
could be headed for a recession.
The Japanese yen, which tends to benefit during geopolitical
or financial stress as Japan is the world's biggest creditor
nation, has strengthened about 0.3% against the dollar this week
as investors reached for safety.
The yen started the day strong against the dollar as
investors fretted over this week's economic data from China and
Germany that revealed the extent of the damage the China-U.S.
trade dispute is causing to the world economy.
The Japanese currency advanced sharply against the greenback
on Wednesday after the first inversion in the U.S. Treasury
yield curve US2US10=TWEB in 12 years sparked heightened fears
of an imminent end to the longest economic expansion in U.S.
history. However, the yen retreated against the greenback on Thursday
after data showed U.S. retail sales surged in July, helping
assuage financial markets' fears that the U.S. economy was
heading into recession. "With the rest of the world sliding into the abyss, the July
retail sales figures show a resurgent U.S. consumer riding to
the rescue once again," Michael Pearce, Senior U.S. Economist at
Capital Economics said in a note.
U.S. retail sales rose in July as consumers bought a range
of goods even as they cut back on motor vehicle purchases, which
could help ease financial markets' fears that the economy was
heading into recession.
The dollar was up 0.27% against the yen.
The dollar index, which tracks the greenback versus the
euro, yen, sterling and three other currencies, .DXY was up
0.18% at 98.166, close to a two-week high.
Elsewhere, Norway's crown weakened after its central bank,
the Norges Bank, said its policy outlook was now more uncertain,
raising doubts about whether it would raise rates later in 2019.
The crown slipped to a near 18-year low against the U.S.
dollar. The Australian dollar AUD=D3 was up 0.44% to $0.6777 after
data showed the Australian economy had added a forecast-busting
41,100 new jobs in July. However, as the Sino-U.S. trade war raises fears of a global
recession, businesses run the risk of being caught in a
self-fulfilling vicious cycle, a top Australian central banker
warned on Thursday. Meanwhile, sterling rose 0.46% against the dollar, helped by
better-than-expected retail sales and news that Britain's
opposition Labour Party has begun its bid to bring down Prime
Minister Boris Johnson and stop him from taking Britain out of
the European Union without a deal.
Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
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