Dollar Falls for Third Day as Oil Prices Rise Amid Middle East Disruptions

The US dollar index fell by another 0.1% to 98.76 on September 9, extending its decline for the third consecutive day. The probability of the US Federal Reserve keeping interest rates unchanged through October is now at 29.8%, while a cumulative 50-basis-point hike has a 15.8% chance.

Copper prices in China rose by 0.29%, reaching their highest level since January this year, with the average price of Guangdong #1 copper cathode increasing to 111,660 yuan/mt. In contrast, LME copper fell by 0.8%. The most-traded cast aluminum futures contract and alumina contract both gained 0.49% and 0.54%, respectively.

Oil prices on both exchanges extended gains, with WTI crude up 1.52% and Brent crude up 1.62%, supported by growing concerns over Middle East energy supply disruptions. On Tuesday, six commodity carriers passed through the Strait of Hormuz, down from nine the previous day, while 25 carriers passed through the Bab el-Mandeb Strait.