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Today USD Rate: USD dips, crude oil backs commodity currencies

On Tuesday, a combination of weak U.S economic data and gains for commodity-linked currencies such as Australian and Canadian Dollars shackled the USD. The two drew support from an extended surge in crude oil prices.

The dollar index against a basket of six major currencies inched down 0.05% to 97.001 after losing 0.35% the previous day. The index marked its most significant daily decline since March 20.

Apart from pressure from buoyant commodity-linked currencies, the data showing U.S durable goods orders declined in February weighed the dollar. Also, a bounce in the euro as investors squared positions ahead of a looming European Central Bank meeting.

“The dollar’s strength peaked out towards the end of last week when the U.S. jobs data showed that wage increases had slowed. The currency hasn’t been able to find traction since,” said Shin Kadota, senior strategist at Barclays (LON: BARC) in Tokyo.

The CAD was little changed at C$1.3312 per dollar after gaining more than 0.5% overnight.

The AUD was steady at $0.7128 having risen 0.3% the previous day.

Oil prices have surged to five-month highs on expectations that global supplies would tighten due to fighting in Libya, OPEC-led cuts and U.S. sanctions against Iran and Venezuela.

The Norwegian kroner held to its gains and stood at 8.543 per dollar after rallying 0.7% the previous day on higher crude. Norges Central bank’s intention to continue hiking interest rates over the coming months also boosted the kroner.

On Monday, the euro was effectively flat at $1.1265 after advancing 0.4%, ending a two-day losing streak.

The pound edged up 0.1% to $1.3078, having traded in a narrow range so far this week. It reflected nervousness in the market about key Brexit talks.

The dollar shed 0.1% to 111.37 yen to put additional distance between a three-week peak of 111.825 scaled on Friday.

Today USD Rate: Asia shares edge up to eight-month peak, oil settles FinanceBrokerage: Today USD Rate: Chinese measures to boost economic growth lifted mainland markets.

On Tuesday, Asian shares hit an eight-month high as optimism about Chinese measures to boost economic growth lifted mainland markets. However, worries about U.S. earnings and a crucial Brexit summit this week limited gains.

MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.3%, hovering near its highest level since Aug. 9 last year.

On Monday, Chinese blue chips advanced 0.15% as investors cheered a plan unveiled by China’s state planner to relax residency curbs in many of its smaller cities and increase infrastructure spending.

Outside of China, the broader sentiment was mostly subdued as investors’ focus remained on potential flashpoints, including a crucial Brexit summit as well as a meeting on trade between the European Union and China set for later on Tuesday.

Japan’s Nikkei drifted 0.1% higher, while Australian shares traded a shade lower.

Wall Street shares delivered a mixed performance on Monday, with the Dow Jones Industrial Average losing 0.3% while the S&P 500 added 0.1%.

The S&P 500, however, moved on its momentum for its eighth straight session of gains and the longest winning streak since October 2017, as rallying crude prices overnight lifted energy shares.

Oil prices rose to their highest since November, driven by fighting in Libya along with ongoing supply cuts pledged by the Organization of the Petroleum Exporting Countries and U.S. sanctions against Iran and Venezuela.

In the commodity market, oil prices hovered near their highest since November 2018 on persistent worries about tightening supplies.

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