DOLLAR
The U.S. dollar hit a one-week high against a basket of six major rivals on Tuesday as focus turned to the likelihood of a December Federal Reserve rate hike, while declines in riskier commodity currencies also boosted the dollar.
The dollar index, which measures the greenback against a group of six major currencies, hit a one-week high of 95.672 as U.S. Treasury yields surged on what analysts said were growing expectations for a December Fed rate increase.
The dollar followed gains in U.S. yields, which spiked after a 30-year Treasury bond auction in which some investors withheld bids. Benchmark 10-year Treasury yields, as well as three-year yields, hit their highest levels since early June.
The dollar also received a boost against the yen after Nikkei News Service reported that the Bank Of Japan (BOJ) plans to position taking interest rates further into negative territory. The BOJ is scheduled to meet on the same dates as the U.S. Fed, on Sept. 20-21.
OIL
Oil dropped as the International Energy Agency changed its view on global oversupply, seeing a glut persisting into 2017.
Futures fell 3 percent in New York. The oil surplus will last longer than previously thought as demand growth slumps and output proves resilient, the IEA said. U.S. crude supplies probably rose by 4 million barrels last week, according to a Bloomberg survey before an Energy Information Administration report Wednesday. The nation had the biggest supply decline in 17 years the prior week when a tropical storm disrupted imports and offshore production.
Brent for November settlement slipped $1.22, or 2.5 percent, to $47.10 a barrel on the London-based ICE Futures Europe exchange. The global benchmark crude closed at a $1.62 premium to WTI for November delivery.
Reference: Reuters, Bloomberg
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