The dollar was weaker across the board on jitters ahead of tomorrow's US trade data, as investors overlooked the prospect of a strong retail sales report this afternoon Tomorrow's trade figures are expected to show a widening deficit, raising fears that US structural concerns could return to the fore again and spark another period of dollar weakness "In terms of the outlook for the dollar, tomorrow's trade number has now become a significant risk," said HBOS currency analyst Steve Pearson "In this context we doubt the dollar will garner much support from what is likely to be a very strong retail sales report today," he added This afternoon's retail sales figures are expected to be firm, but even a number well above consensus is unlikely to alter the market's view of where US interest rates will be at the end of the year. As such any knee-jerk dollar rally is likely to be sold into, Pearson said Meanwhile, the yen continued to strengthen, rising to 6-week highs against the dollar The Japanese currency has been bolstered lately by the solid outlook for the economy, with GDP figures released overnight tonight expected to give further credence to this view In addition, the Nikkei index of major Japanese stocks closed at a four-year high today, while political worries are fading as polls suggest that Prime Minister Junichiro Koizumi will return to power in the snap elections called after parliament failed to approve his plans for post office reform