Dollar struggles near six-week lows, no Fed hike seen soon
The dollar inched up but stayed close to six-week lows against a basket of currencies on Wednesday, kept under pressure by the view that the U.S. Federal Reserve will raise interest rates later rather than sooner.
The greenback had been on its best run of weekly gains in 1-1/2 years until last week, when expectations that the Fed would clearly signal a near-term rate hike were disappointed, and U.S. growth data came in much weaker than expected.
The dollar index inched up 0.2 percent on Wednesday but at 95.284 .DXY remained close to Tuesday's low of95.003 and was down 2 percent compared with a week ago, before the Fed's policy statement.
IMF backs labor, tax reforms to boost Abenomics
The government of Prime Minister Shinzo Abe should step up efforts to revamp the labor market, encourage businesses to raise wages and restore the nation’s debt-ridden finances through consumption tax increases as part of efforts to spur the flagging Abenomics policy mix, the International Monetary Fund said Tuesday.
With Japanese policymakers finding it ever more difficult to rely on exports, increased debt and further monetary easing for revitalizing the economy and achieving the Bank of Japan’s 2 percent inflation target, the IMF urged Japan to promote labor market reform by addressing the wage gap between regular and nonregular employees, as well as boosting participation in the labor force by female, elderly and foreign workers.
Oil prices remained weak on Wednesday
Oil prices remained weak on Wednesday, with U.S. crude below $40 per barrel and Brent under $42, as fuel oversupply and stuttering economic growth weighed on markets, although prices did receive some support from a weaker dollar.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were trading at $39.54 per barrel at 0651 GMT (2:51 a.m. ET), slightly above their last close and well below the $40 marker they settled below for the first time since April in the previous session.
International Brent crude futures LCOc1 failed to hold $42, trading at $41.77 per barrel.
Reference: Reuters,
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