The dollar rose to its highest level against the yen on Wednesday after a government report indicated that retail sales in the U.S. rose more than expected, easing concerns about the likelihood of a U.S. recession.

Retail sales were up 0.3 percent in January, according to the Commerce Department. Analysts had expected a drop of 0.2 percent.

Despite the report, investors are still holding on to the chance that the Federal Reserve may continue to cut rates.

The dollar rose against yen to 108.18 yen per dollar at 3:32 p.m. in New York from 107.31 yen late Tuesday. The euro rose to 157.75 yen from 156.50. The dollar was at $1.4580 from $1.4584.

Retail sales European union