Thursday, as investors were waiting for the delayed United States tax bill, the dollar retreated from its three-and-a-half-month high against the Japanese safe-haven yen. The greenback settled at 1140.30 yen JPY=, which was 0.15% lower compared to its previous close. Overnight, the dollar gained 0.5% and hovered near 114.450 yen JPY=, which was considered the greenback’s highest level since July 11.
The dollar was able to maintain its high position thanks to positive macro-economic data released in the United States. Investors are now focusing on the Fed’s monetary policy. The concrete and steady U.S. economic growth as well as the strengthening U.S. labor market may tip the scales in favor of a rate hike
Oil prices were stable on Thursday, boosted by the recent drop in the United States crude inventories despite rising production. The international benchmark, Brent crude, settled at $60.49 a barrel; the United States West Texas Intermediate ended at $54.25 per barrel – 5 cents lower than its last close.
According to the EIA, commercial crude oil inventories in the United States dropped by 2.4 million barrels to 454.9 million barrels in the week ending at October 27. William O’Loughlin, investment analyst at Rivkin Securities, mentioned that U.S. crude inventories were on a downward trend in the aftermath of hurricane Harvey.