Dollar nears 13 1/2-year high, buoyed by multiple rate hike view
The dollar traded within sight of a 13 1/2-year peak on Wednesday, bolstered by strong U.S. housing data that further cemented expectations for a Federal Reserve rate hike in December and more tightening next year.
Against a basket of six major currencies, the dollar last stood at 100.98 . That was up from Tuesday's low of 100.65 and not too far from Friday's high of 101.48 - the highest for the dollar index since April 2003.
US existing home sales hit more than 9.5-year high
U.S. home resales rose in October to their highest level in more than 9-1/2 years amid pent-up demand, offering more evidence of a pickup in economic growth in the fourth quarter, but a recent surge in mortgage rates could slow housing market activity.
The National Association of Realtors said on Tuesday existing home sales increased 2.0 percent to an annual rate of 5.6 million units last month, the highest level since February 2007. September's sales pace was revised up to 5.49 million units from the previously reported 5.47 million units.
Economists polled by Reuters had forecast sales slipping 0.5 percent to a 5.43 million-unit pace in October. Sales were up 5.9 percent from a year ago.
Oil Closes Near $48 as OPEC Still Negotiating Iran, Iraq Cuts
Oil closed near $48 a barrel in New York after an OPEC committee failed to agree on Iranian and Iraqi production levels.
Futures ended the session little changed after rising and falling about 2 percent. The talks in Vienna Tuesday haven’t resolved the question of whether the group’s second and third-largest members will participate in any production cuts, and the matter will be put off until the meeting of ministers on Nov. 30, according to two delegates. While Libya’s OPEC governor Mohamed Oun said the meeting ended with a consensus that will be presented to ministers, he didn’t comment on Iran and Iraq’s role.
West Texas Intermediate for January delivery fell 21 cents, or 0.4 percent, to close at $48.03 a barrel on the New York Mercantile Exchange. Total volume traded was about 37 percent above the 100-day average at 4:40 p.m.
Reference: Reuters, CNBC, Bloomberg
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