The dollar fell to a 15-month low versus the yen and dropped against the euro for the fourth consecutive day on Wednesday. This was because investors were nervous ahead of key U.S. inflation data due to be published later on today. The U.S. inflation data for January is due at 1330 GMT, and the numbers could either upset the fragile recovery of the equity market or clear the way for more gains.
The dollar index has dropped 0.1 percent. The euro rose 0.2 percent higher, trading at $1.2370, off the lows of $1.2206 hit on Friday. Germany’s strong economic numbers for the fourth quarter of 2017 accentuate the strength of the euro zone economy.
Oil dipped on Wednesday as it was squeezed by looming oversupply including the rise in U.S. inventories and abundant physical flows. However, the prospect of Saudi output dropping in March, hopes for economic growth and a weaker dollar, all combined to cap losses.
U.S. West Texas Intermediate crude futures CLc1 closed at $59.06 a barrel at 0741 GMT, which is 13 cents lower than their last settlement. Brent crude futures LCOc1 were down 4 cents at $62.68 per barrel. Brent was over $70 a barrel in early February.
Saudi Aramco’s March crude yields will drop over 100,000 barrels per day (bpd), lower than February yields. Exports will be kept under 7 million barrels per day according to the Saudi energy ministry on Wednesday.