The dollar gained against the euro and yen on Wednesday after reports of better than expected retail sales in the U.S. and comments from a Federal Reserve official boosted the currency's strength.

Retail sales fell 0.2 percent during the March, but rose 0.5 percent excluding auto sales, the Commerce Department reported. Analysts had expected an 0.1 percent decline overall and an 0.2 percent gain not including cars.

Meanwhile, the Dollar Index, which tracks the dollar against six major currencies, rose half a percent to 73.273 on Tuesday.

The dollar was trading at $1.5467 per euro at 7:43 a.m. in Tokyo after gains yesterday. It also rose to 104.65 yen. The euro was also higher against the Japanese currency at 161.89 yen.

San Francisco Fed President Janet Yellen signaled that U.S. interest rates have reached the right level to help the economy grow. She expects the economy to rebound by the end of the year.

She is an alternate voting member of the Federal Open Market Committee in 2008, which sets key interest rates for the dollar.

Retail sales European union