After the Republican legislators’ failed to pass a delayed healthcare bill that causes distress for the rest of the United States President’s reform agenda, and as the U.S. dollar slipped to a 10-month low against a group of its currency rivals, the greenback tended its beatings and escalated roughly on Wednesday.
According to the dollar index, the United States dollar edges up against its six major currency rivals by 0.2% to 94.780 after dropping for as low as 94.476 on Tuesday, which is considered as the greenback’s lowest level since September 2016. In addition, the dollar advanced against the euro as the euro dropped 0.2% lower to $1.1534 after achieving a $1.1583 on Tuesday.
On the other hand, the greenback was also stable against the safe-haven yen at 112.065 yen, which is well below its nearly four-month high of 114.495 last week. The Japanese yen fell as low as 111.685 on Tuesday and is considered as the currency’s lowest since June 27.
Wednesday, as the ongoing crude oversupply from OPEC remains and after an abrupt rise in the United States crude inventories, the price of oil dramatically fell. Brent crude futures were trading at $48.81 a barrel, which is down by 3 cents from their last close. The United States West Texas Intermediate crude futures on the other hand were down by 7 cents and were trading at $46.33 per barrel.
In accordance to this, the American Petroleum Institute said on Tuesday, that the U.S. crude stocks was boosted last week, an approximate of 1.6 million barrels was added in the week to July 14 to 497.2 million barrels. On the other hand, despite of the pledge to cut output, OPEC’s crude supply remained high as rising output from member-states Nigeria and Libya continues.