- The U.S. dollar increased against most major currencies Tuesday amid mixed economic data from the country and rising concerns that the Britain may leave the European Union (EU).
- In currency markets, the British pound GBP= remained under pressure, and was down 2.7 percent on the past two sessions, its biggest two-day drop in six years, on worries Britain may leave the European Union. Sterling was last down 0.83 percent at 1.403.
The euro EUR= also fell to $1.0987 on Monday, its lowest in almost three weeks, on fears Brexit could undermine the European Union. It was last down 0.13 percent at $1.1012.
Investors' shift towards safer ground on Tuesday pushed the dollar lower against the yen, down 0.7 percent to 112.10 yen JPY= after hitting a low of 111.75.
The dollar's index against a basket of six major currencies .DXY was little changed, up 0.09 percent at 97.467
- The U.S. dollar traded in the upper 111 yen range early Wednesday in Tokyo, lower than its levels late Tuesday in New York.
In New York, risk-taking sentiment among market players was dented as U.S. stocks and crude oil futures sharply dropped, prompting buying of the yen, which is perceived as a relatively safe asset, dealers said.
- U.S. home resales unexpectedly rose in January, reaching a six-month high, in the latest sign that the economy remains on firmer ground despite slowing global growth and tightening financial market conditions.
The National Association of Realtors said existing home sales increased 0.4 percent to an annual rate of 5.47 million units, the highest level since July. January's sales pace was also the second highest since 2007.
- Worries of a recession and relentless declines in oil prices triggered the recent wave of selling on global equity markets, causing financial market conditions to tighten.
The sell-off hurt consumer sentiment this month, a third report showed. The Conference Board said its consumer confidence index fell to a six-month low of 92.2 from a reading of 97.8 in January.
- The Bank of England is not making a judgment about the potential outcome of the Brexit referendum, Governor Mark Carney told lawmakers on Tuesday.
Carney said the monetary policy committee has room for additional stimulus. If the economy needs more stimulus, the bank will make asset purchases, including a variety of assets, he said at the Treasury Select Committee hearing.
- Oil prices slid in early trading on Wednesday, extending sharp falls from the previous session after top exporter Saudi Arabia ruled out production cuts and industry data showed a further build in U.S. crude stockpiles.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were trading at $31.46 per barrel at 0012 GMT, down 41 cents from their last settlement. They had already dropped 6 percent the previous day.
Saudi Arabia's veteran oil minister Ali Al-Naimi said on Tuesday at a conference in Houston, Texas, that a coordinated production cut by OPEC and non-OPEC exporters was "not going to happen because not many countries are going to deliver."
He also said that a proposed freeze in output at January levels, which were near record highs, would require "all the major producers to agree not to add additional barrels."
- "Some of our neighbours have increased their production to 10 million barrels a day in recent years and export this amount, and now they have the nerve to say we should all freeze our production together," Bijan Zanganeh was quoted as saying by the Iranian student news agency ISNA.
"So they should freeze their production at 10 million barrels and we should freeze ours at 1 million barrels - this is a laughable proposal," he said.
Reference: Reuters, Asia.Nikkei, rttnews
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