In face of hopes of restraint in East Asia regarding the upcoming talks between the United States and North Korea, the dollar rose and stood firm against the Japanese safe-haven yen on Thursday. The greenback settled at 106.82 yen JPY=, recovering from the currency’s sixteen-and-a-half week low of 104.56 yen capped on Monday. The dollar index climbed by 0.75% and was traded at 90.04 .DXY. The euro also lost strength against the dollar and was traded at $1.2310.
The U.S. dollar gained momentum thanks to investors and analysts’ hopes of a detente in East Asia after China confirmed on Wednesday that Kim Jong Un, North Korea’s leader, pledged and assured his commitment to denuclearization on the upcoming talks between North Korea and the United States.
Prices of oil climbed on Thursday as OPEC countries along with Russia and non-OPEC members mentioned their willingness to continue cutting crude supply for the rest of 2018 with the possibility of extending this policy to 2019. Bren was traded at $69.81 per barrel after going higher by 0.4% or 28 cents. The United States West Texas Intermediate settled at $64.62 a barrel – 0.4%, or 24 cents, higher than its last settlement.
Oil prices declined on Wednesday on a surprise surge in U.S. inventories, pulling the international benchmark below the $70 per barrel level capped on Monday. Reports from the EIA indicated a surprise surge in U.S. crude inventories of 1.6 million barrels last week to 429.95 million barrels.