The dollar briefly rose on Wednesday after a report showed May U.S. retail sales growth was the largest since January 2006, but pared gains after U.S. Treasury yields slipped.

The dollar edged up against the yen, trading at about 122.41 yen from about 122.35 yen, where it was shortly prior to the report. Earlier the dollar had hit a 4-1/2-year high against the low-yielding yen.

The euro was trading at about $1.3285, down 0.1 percent on the day.

It is all very dollar supportive. The U.S. consumer continues to chug along, though I don't know where he's getting the money, said Ezechiel Copic, foreign exchange analyst with IDEAglobal in New York.

I don't know that this has an immediate effect on the Fed outlook.

The dollar has been rallying for about a week as the yield on the benchmark 10-year U.S. Treasury note has broken above 5.25 percent.