The greenback kept stable on Monday after gradually losing steam from recent highs. The greenback was able to preserve most of its strength despite the decline in U.S. Treasury yields as a result of weak April U.S. consumer price data. According to the dollar index, the U.S. dollar held firm against its six major currency rivals and was seen settling at 92.402 .DXY – 0.15% lower compared to its previous settlement but still only an inch lower from the recent four-and-a-half month high of 93.416 recorded on Wednesday last week.
The euro rose by approximately 0.05% and settled at $1.1948 – above its previous low of $1.1823 which was its weakest point since December 22, 2017. The greenback maintained its strength against its Japanese counterpart, settling at 109.330 yen JPY=.
Oil fell on Monday shredding gains from their massive highs last week on the persistent rise in United States crude inventories. Brent crude futures, the international benchmark, settled at $76.65 per barrel which was 0.6%, or 47 cents, lower than their previous close. United States West Texas Intermediate settled at $70.41 per barrel after declining by 0.4%, or 29 cents.
Oil prices were affected by the continuous rise in U.S. crude inventories. On the week that ended on May 11, U.S. drillers managed to add 10 oil rigs reaching total count to 844 – the highest count since March 2015.
Both crude futures managed to reach their highest since November 2014 last week, trading at $78 per barrel for Brent and $71.89 a barrel for U.S. West Texas Intermediate. This was due to analysts and investors’ expectations that oil exports from Iran would remarkably fall once U.S. sanctions were imposed in the course of the following year.