German&Oil and Gas

German Retail
The euro rose versus the dollar after Germany’s Wiesbaden- based Federal Statistics Office said retail sales, adjusted for inflation and seasonal swings, rose 0.5 percent in April, the first increase in four months.

U.S. gross domestic product shrank at a 5.7 percent annual pace in the first quarter, less than what was estimated last month, the Commerce Department reported today in Washington.

The 16-nation currency also advanced as crude oil posted its biggest monthly gain in a decade, adding to speculation the European Central Bank will avoid an interest-rate cut next week to prevent stoking inflation.

“Rising crude oil prices give little reason for the ECB to take action on interest rates,” said Akio Yoshino, chief economist in Tokyo at Societe Generale Asset Management (Japan) Co. “The yield advantage will support the euro.” The ECB’s benchmark policy rate is 1 percent, compared with as low as zero in the U.S. and 0.1 percent in Japan.

Crude Oil Gains
Crude oil for July delivery rose as much as 2.1 percent to $66.47 a barrel on the New York Mercantile Exchange, extending its advance in May to 29 percent, the biggest monthly gain since March 1999.

The currencies of emerging-market nations and commodity producers rose on gains in oil and industrial metals after India’s statistics office said the country’s economy grew a greater-than-estimated 5.8 percent in the first quarter from a year earlier.

India’s rupee appreciated as much as 1.1 percent to 47.0875 per dollar, the biggest intraday gain since May 19, while the South African rand added 1.1 percent to 7.9377 per dollar. The Australian dollar climbed 2.1 percent to 80.01 U.S. cents, and the New Zealand currency rose 2.4 percent to 63.83 cents.