The greenback was traded close to three year lows versus a collection of other major currencies on Monday, meanwhile, the euro climbed up on hopes that the European Central Bank (ECB) policymakers were preparing to further cut their monetary stimulus.
The dollar index, that tracks the greenback versus other major currencies, dipped 0.1 percent to 90.931 following its fall as far as 90.857 earlier in the session, the lowest level since January 2015. Versus the yen, the dollar went lower by 0.1 percent to 110.90, after falling earlier as low as 110.82. The yen was able to gain strength due to recent optimistic publication regarding the state of Japan’s economy. The euro fell 0.1 percent to $1.2191. In spite of its decline, the euro is still on track for record high of $1.2218 marked on Friday, the highest level since December of 2014.
Despite OPEC and Russia’s production cuts and the healthy demand which kept crude close to December 2014 peaks reached the previous week, on Monday, oil prices dropped due to increasing drilling activity in the United States. In fact, 10 oil rigs were added in the week ending on January 12, lifting the total rig number to 752.
U.S. West Texas Intermediate (WTI) crude futures CLc1 settled at $64.27 per barrel shedding 3 cents. Brent crude futures LCOc1, the global average for oil prices, settled $69.72 a barrel at 0008 GMT, dropping 0.2 percent or 15 cents from their last settlement.
Both WTI and Brent reached peak levels the previous week which were not seen since December of 2014, at the beginning of the oil price slump. According to ANZ bank, oil prices had increased lately due to data showing sign of a tightening market.