2010.09.1016:56:00UTC+00Dollar Gains On Yen As Wholesale Inventories Jump

The dollar edged away from a 15-year low against the yen on Friday, as encouraging news on US wholesale inventories raised hopes consumer demand will pick up.

Wholesalers stocked up their warehouses in July at the fastest pace in two years.

Inventories rose 1.3% to $405.0 billion in July from the previous months upwardly revised levels, according to a report from the Commerce Department released Friday. Economists were expecting an increase of only 0.4%.

Taken with yesterday's better-than-expected jobless claims data, this week's economic news was a welcome respite from a previously steady stream of ill tidings.

President Barack Obama Friday continued to press for additional measures to boost hiring and promote economic growth.

Speaking at a White House Press Conference, Obama said that the series of proposals he'd spelled out earlier in the week - additional spending on the nation's infrastructure and a package of pro-growth tax cuts - would be critical for the nation's economic future.

The buck extended its run of choppy trading versus the euro, holding just above 1.2700. The pair has barely budged over the past month, moving in a three cent range.

European Central Bank President Jean-Claude Trichet said the special credit measures extended to banks in the euro area will have to be maintained for some time yet to protect the recovery.

The dollar improved to Y84.30 versus the yen, up from a 15-year low of Y83.33.

Against the sterling, the dollar edged slightly higher to $1.5350.

China posted an unexpected 35.2% jump in August imports this morning, signaling consumption is picking up in what is now the world's second largest economy.

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