Dollar Gains as Oil Prices Surge Ahead of Inflation Report
The US dollar strengthened on Tuesday as oil prices rose ahead of the closely watched consumer price inflation report for July, which could have significant implications for interest rate decisions by the Federal Reserve. The jobs report on Friday was weaker than expected, casting doubt on a near-term rate hike.
According to Adam Button, chief currency analyst at investingLive, 'September was starting to look highly likely and then not only did we get a bad jobs report, but terrible revisions as well.'
The dollar index rose 0.20% to 99.80, with the euro down 0.13% at $1.1542. The yen weakened 0.84% to 159.14 per dollar, its steepest daily decline against the greenback in almost five months.
Speculators slashed their bearish bets on the Japanese yen by the most in over 12 years, according to data from the Commodity Futures Trading Commission, reflecting coordinated efforts between Japanese and US authorities to strengthen the currency.