The dollar hit a 4½-year high against the yen and an 11-week peak against the euro Wednesday as data revealed a sharp jump in US retail sales.

Retail sales climbed to their highest level in 17 months in May, rising by 1.4 per cent, well above forecasts for a 0.7 per cent increase. Rob Carnell at ING said the figures would continue to put upward pressure on already elevated US bond yields and raise expectations that the Federal Reserve would move to raise US interest rates either later this year or early next.