On Thursday, the Greenback inched higher and traded near one-and-a-half week highs vs. a basket of major currencies following overnight gains after the minutes of the Federal Reserve's January meeting went against expectations for faster rises in U.S. interest rates. The minutes showed that Federal officials see rising inflation and increased economic growth as justification to continue to raise interest rates gradually.
The Single currency rose slightly by 0.07%, to settle at $1.2292. On the release front, traders are awaiting the ECB Publishes Account of Jan. 24-25 Policy meeting.
The Sterling pound fell by 0.16%, to a one-week low of $1.3896. On the release front, traders are awaiting Gross Domestic Product, which is expected to hit 1.5%.
Against the JPY, the USD fell by 0.35%, to settle at ¥107.39, as investors piled into safe-haven assets. On the release front, traders are waiting JPY National Consumer Price Index (YoY) (JAN), rising CPI could prompt the Bank of Japan to hike interest rates in order to manage inflation and slow economic growth.
Early on Thursday, Gold prices edged lower to one-and-a-half week lows, after the minutes of the Federal Reserve's latest policy minutes pointed to the need for further interest rate rises, sending the USD higher. Gold Futures - Apr 18 (GCJ8), fell by 0.03%, to settle at $1,330.80.
Oil prices declined, as a firmer dollar outweighed a report of a decrease in U.S. crude stockpiles. Since oil is priced in dollars, an increase in the USD makes fuel imports for countries using other currencies domestically more expensive, potentially curbing demand.Crude Oil WTI Futures - Mar 18 (CLH8) fell as much as 0.65%, to settle at $61.28, and Brent Oil Futures - Apr 18 (LCOJ8) was down by 0.47% at $65.11.
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