LONDON, May 12: The dollar surged to a six-month high against the euro here on Thursday following publication of stronger-than-expected US retail sales in April. The single European currency in late-day trade was at $1.2713 against $1.2814 late Wednesday in New York. The euro at one point fell to $1.2691, its lowest reading since November 3, 2004.

The dollar was meanwhile trading at 106.67 yen after 105.73 on Wednesday. Official figures showed US retail sales up 1.4 per cent in April, the best gain in seven months and higher than forecasts of 0.8 per cent improvement.

The sales gains were widespread across most kinds of retail outlets, including autos, gasoline, department stores and hardware stores. Excluding autos, sales increased 1.1 per cent against expectations of a 0.6 per cent advance.

“Such a strong print on retail sales will be a powerful bull sign for the dollar, and if the euro can hold below the three-year trend-line of $1.2720 we can expect many forecasters to belatedly revisit their projections of dollar weakness,” said Daragh Maher, senior FX strategist at CALYON. On the London Bullion Market, the price of an ounce of gold stood at $424.25 against $426.10 late on Wednesday. —AFP