Dollar on defensive, hits one-month low vs yen
The dollar hit a one-month low against the yen on Tuesday, staying on the defensive after recent U.S. economic data were seen likely to limit the prospects of a near-term Fed interest rate hike.
The dollar slid 0.8 percent to 100.43 yen and touched a low of 100.355 yen at one point, the greenback's lowest level against the yen in more than a month.
Against a basket of six major currencies, the dollar fell 0.2 percent to 95.417 .DXY.
Hedge Funds Bet Dollar Will Lose More Ground Versus Yen: Chart
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Hedge funds and other large speculators increased net bets the dollar will weaken against the yen to the highest level in a month, according to Commodity Futures Trading Commission data as of Aug. 9. Traders will focus on the meetings of the Federal Reserve and the Bank of Japan next month for direction, after disappointing stimulus announced last month by the BOJ failed to halt yen strength.
Crude Oil Extends Gains as Russia Stokes Output Deal Hopes
Crude oil prices continued to push upward after Russian Energy Minister Alexander Novak said his country would be open to talks about a joint output freeze with OPEC and non-OPEC producers. The comments were made in an interview with Saudi Arabian newspaper Asharq Al-Awsat and bolster hopes of a deal to boost prices that have buoyed the WTI contract since last week.
On balance, the emergence of a supply-side deal seems unlikely considering the key parties to any such arrangement – Iran, Saudi Arabia and Russia – are currently on opposing sides of at least two active military conflicts (principally in Syria). Indeed, similar-sounding efforts have foundered recently. A lull in headline-grabbing news flow may offer space for skepticism to emerge on these grounds, undermining upside follow-through. Weekly API inventory data may overtake the spotlight in the near term however.
Reference: Reuters,Bloomberg,DailyFX
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