The U.S. dollar nursed modest losses early on Tuesday, having come under pressure as currencies such as the Canadian dollar staged a dramatic reversal thanks to a broad rebound in commodity prices.
Investors were quick to cut short positions in the Australian, New Zealand and Canadian dollars as prices of oil, copper and gold rallied from lows. Benchmark Brent crude, for example, jumped to $72.95 from a five-year low of $67.53 in a brutal squeeze of bearish positions.
As a result, the Norwegian crown raced to 6.9368 per USD from a 5-1/2 year low of 7.0577. The Canadian dollar rose to C$1.1327 per USD from a one-month low of C$1.1459. The Aussie shot back above 85 U.S. cents, pulling away from a 4-1/2 year low of $0.8417 and its kiwi peer clambered to $0.7876 from $0.7777.
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