Monday, reinforced by recent increase in the United States Treasury yields, the U.S. dollar edged up and ended 0.3% higher against its Japanese counterpart, nearly touching a seven-week high. The greenback traded at 111.17 yen, which was an inch lower from the currency’s peak of 111.33 yen on Friday, and is also considered as the greenback’s highest since late July.
According to traders and analysts, the recent drop of the safe-haven yen against its major currency rivals had some impact and gave extra support to the dollar. Positive data from the United States consumer prices helped restore expectations about a possible Fed interest rate hike this December and gave the greenback the boost it needed so much.
After touching multi-month highs late last week, oil markets remained stable on Monday. The United States West Texas Intermediate crude futures traded at $49.83 a barrel, which was 6 cents below their last close, but close to their three month high of over $50 a barrel. Meanwhile, the international benchmark, Brent crude futures, traded at $55.60 per barrel, which was also down by 2 cents but also close to their near five-month high of $55.99 reached last week.
Oil markets remained firm and stable as the count of the U.S. rigs drilling for new production fell still battling the devastating effects of Hurricane Harvey. Oil refineries across the Gulf of Mexico as well as the Caribbean, which were shut due to hurricanes Harvey and Irma are slowly resuming their production.
Moreover, positive demand forecast released both OPEC and IEA increased investors’ confidence in the black gold.