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Dollar steady as investors await U.S. presidential debate, ECB

The dollar was steady in early trading on Thursday, as investors awaited the final debate before next month's U.S. presidential election as well as a European Central Bank meeting later in the day.

The dollar was little changed on the day at 103.45 yen JPY=, while an index of the U.S. currency which tracks it against a basket of six major rivals, was nearly flat at 97.911 .DXY=

Fed's Dudley expects U.S. hike later this year

The Federal Reserve will likely raise interest rates later this year if the U.S. economy remains on its current path, New York Fed President William Dudley said on Wednesday, downplaying any market-related risks of tightening policy in December.

"If the economy stays on its current trajectory I think ... we'll see an interest rate hike later this year," Dudley said at the Lotos Club.

Dudley, a permanent voter on policy and a close ally of Fed Chair Janet Yellen, added that a quarter-point hike later this year "is not that big a deal," and he downplayed any risks related to tightening policy in December when investors are preparing for year-end.

Fed's Kaplan sees gradual rate hike appropriate

U.S. inflation, which has under-run the Federal Reserve's 2-percent target for years, is "likely firming," Dallas Fed President Robert Kaplan said on Wednesday, adding that some removal of monetary accommodation will be appropriate.

Kaplan, speaking at the Fort Worth Chamber of Commerce's Mayor's International Luncheon, said he expects U.S. GDP growth to be about 1.75 percent this year, slower than what has been historically the norm but enough to push down unemployment and reduce slack in the labor market.

But because growth is so sluggish, and looks likely to remain so because of factors like an aging population that are beyond the Fed's control, any rate hikes must be made "gradually and cautiously," he said.

Fed not as diverse as it should be, Williams says

The Federal Reserve has not done enough to make itself as diverse as it should be, San Francisco Federal Reserve Bank President John Williams said on Wednesday.

"If we don't attract and retain diverse employees, we are missing out on a huge and growing part of the labor force," Williams said in remarks prepared for delivery at a conference on diversity in the financial services industry at Rutgers University. "Diverse perspectives often lead to better thinking and better outcomes."

Oil up over 2 percent; U.S. crude at 15-month high on big drawdown

Oil prices jumped more than 2 percent on Wednesday, with U.S. crude settling at its highest in 15 months after the government reported a surprisingly large drop in inventories for the sixth week out of seven.

The U.S. Energy Information Administration (EIA) said crude stocks fell 5.2 million barrels in the week ended Oct. 14, versus forecasts for a 2.7-million barrel build. [EIA/S]

Crude stocks generally rise at this time of year as refineries go into maintenance. Refinery utilization is down to 85 percent from nearly 94 percent in early September.

The EIA said U.S. crude imports slid by 912,000 barrels per day last week to 6.47 million bpd, the lowest since November 2015, crimping inventories.