G20 and FED prompted dollar to recover against its major traded rivals. The market is closely watching a meeting between Trump and Chinese leader Xi Jinping at the G20 summit on Saturday.
Caution before a G20 meeting prompted investors to buy back the currency by FED chief comments. The Federal Reserve chief signalled that a rising trend in U.S. rates may be ending.
The G20 summit on Friday and Saturday is shaping up as a key event for markets. U.S. and Chinese Presidents are to discuss contentious trade matters after months of tensions between the world’s two biggest economies.
According to analysts, against this backdrop, risk appetite was likely to remain subdued and benefit the safe-haven dollar.
The dollar index firmed to 97, up almost 0.4% from almost one-week lows hit earlier.
The greenback took a beating after Fed chief Powell said on Wednesday that U.S. interest rates were just below neutral.
The greenback weakened earlier on Thursday after data showed that inflation slowed in October, despite a jump in consumer spending.
Forex – Commodities – G20 and FED prompted dollar to recover, sterling drops
The euro fetched $1.1351 and was 0.1% lower on the day, having touched $1.1398 – its highest in almost a week.
The greenback was down 0.25% at 113.41 yen, but off the day’s lows of 113.21.
Elsewhere, the pound lost about 0.4% against the dollar on concern about the UK parliament’s vote on Brexit. Also, the BoE warned of risks to the currency if Britain leaves the European Union in a disorderedly manner.
Oil reversed course and rose, after industry sources said Russia had accepted the need to cut production, together with OPEC. The price is still set for its biggest one-month fall in November since the depths of the 2008financial crisis. Oil prices have lost more than 22% so far.
Brent crude futures were last up 51 cents on the day at $59.27 a barrel, off an earlier session low of $57.50. Further, U.S. crude futures rose 68 cents to $50.97.
Sources: Reuters, CNN money, BBC
PLEASE NOTE The information above is not investment advice.