The euro closed at $1.28, compared to yesterday in which it hit $1.24.
After losing 10 percent in 2017, the dollar recorded its best monthly performances in February since November 2016. This was all because solid U.S. macro-economic data fanned expectations that the Fed would raise interest rates four times this year instead of three. However, from a yearly perspective it has declined about 2 percent since the beginning of 2018 and is forecast to continue weakening even further this year.
Some leading analysts predict that The U.S. dollar will fall back even further over the coming year, and end up giving way to an increasing euro. Five or more Federal Reserve rate rises would be needed to significantly boost the greenback’s fortunes.
Stocks, bonds and currency markets have been split over the past month because of the rising volatility, concerns over high inflation rate, and the fact that U.S. government borrowing might surge due to the administration’s tax cuts and plans for increased spending.
Oil prices went up on Tuesday on account of a weak dollar, but gains were limited due to an increase in U.S. crude stockpiles. Brent crude LCOc1 futures went up about 25 cents and ended up at $65.79 a barrel, which is basically a 0.4 percent gain. During the session Brent reached a six-day high of $66.16 a barrel. West Texas Intermediate (WTI) crude CLc1 futures have gone up by 3 cents and ended up standing at $62.60 a barrel.