Dollar-yen slid to 158.60 in New York trading on the 14th after softer-than-expected US data weakened expectations for an early Federal Reserve rate hike, but the pair was bought back to close at 159.40, significantly above the previous day. July retail sales fell 0.6% month on month against a forecast for a 0.1% rise, retail sales excluding autos dropped 0.3% versus expectations for a 0.2% gain, and the preliminary August University of Michigan consumer sentiment index fell to 51.0 from 55.2, below the 55.0 forecast. The dollar later recovered as NY crude oil futures rebounded on concerns that supply disruptions around the Strait of Hormuz could persist, reinforced by reports that US Treasury Secretary Bessent was preparing unprecedented economic measures against Iran. Higher oil prices and firmer long-term interest rates supported the dollar by lifting inflation expectations, leaving markets caught between weakening US demand signals and elevated Middle East geopolitical risk.