The dollar advanced against the yen and euro on Friday on new data easing concern over a possible recession and reducing the need for an additional interest rate cut from the Federal Reserve to give the economy a jolt.

A pair of government reports released Thursday indicated stronger than expected retail sales, showing the continuing strength of consumers, and rising wholesale prices, indicating that inflation is rising.

On Thursday, the U.S. Commerce Department reported that retail sales for November grew at a pace of 1.2 percent for November, about double the expected increase according to several polls of economists.

Also, producer prices grew 3.2 percent in November, the biggest increase in 34 years, according to the Labor Department. Excluding volatile food and energy prices, the index rose a more-than-expected 0.4 percent.

The dollar rose to 112.42 yen at 2:34 p.m. in Tokyo after rising as high as 112.66. The dollar was at $1.4628 per euro from $1.4633 late Thursday.

The Federal Reserve, together with several major central banks, announced a plan on Wednesday to let commercial banks borrow more money as to boost their ability to pay off debts.

Separately, a day earlier the Fed lowered its benchmark interest rate to encourage more borrowing in a bid to promote growth in the economy amid a housing recession and a credit crisis in financial markets.

Retail sales Inflation