The dollar gained as signs of global weakness drove investors toward the relative strength of the U.S. economy, while West Texas Intermediate oil was little changed following its biggest drop in two years. The won weakened after the Bank of Korea cut key interest rates.
The Bloomberg Dollar Spot Index climbed 0.2 percent by 10:41 a.m. in Tokyo as the slowest inflation in four years in China sent commodity currencies lower and the euro weakened. Japan’s Topix (TPX) gauge increased 0.2 percent. Standard & Poor’s 500 Index futures was little changed. West Texas Intermediate crude traded at $81.90 and Brent crude rose 0.3 percent after a 4.3 percent tumble yesterday. The won lost 0.3 percent as rates were cut to the lowest level since 2010.
The dollar index has gained more 6.5 percent since the end of June as signs of recovery in the world’s biggest economy contrast with data signaling weakness in China, Japan and the euro zone. China reported the slowest consumer inflation in more than four years today, while a measure of producer prices, which hasn’t shown an increase since January 2012, dropped more than estimated. Oil is languishing in a bear market, with the International Energy Agency predicting the lowest demand growth since 2009, even as U.S. supplies rise.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015