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Dollar firms after upbeat U.S. data raises rate hike expectations

The dollar firmed in Asian trading on Thursday after data suggesting a pickup in U.S. economic growth early in the fourth quarter increased chances of the Federal Reserve raising interest rates.

The dollar index, which tracks the greenback against a basket of six major peers, rose 0.1 percent to 101.77, pushing back toward its overnight high of 101.91, its highest in nearly 14 years.

Asian currencies at 2009 low seen detering central bank easing

Asian currencies' drop to a seven-year low will probably deter regional central banks from easing monetary policies as the prospects of higher United States rates spurred capital outflows.

The Bloomberg-JPMorgan Asia Dollar Index reached 103.32, the lowest level since March 2009 as odds of a rate increase in December by the Federal Reserve climbed. Fed funds futures are pricing in 100 per cent chance the US central bank will tighten next month, compared with about 71 per cent at the end of October.

One-month implied volatility for 10 major Asian currencies excluding the yen climbed to the highest level this month since February, deterring investors from taking risks in developing economies.

Inside the Fed’s November Minutes

- CTRL-F "Trump" = zero results

- CTRL-F "election" = zero results

- No significant market disruptions

- inflation was projected to be marginally below the Committee's longer-run objective of 2 percent in 2019.

- Participants generally regarded this as a positive development, consistent with headline inflation rising over the medium term to the Committee's objective of 2 percent.

- the continued uncertainty associated with the United Kingdom's exit from the EU, or financial fragilities in some countries. Participants agreed that the Committee should continue to closely monitor inflation indicators and global economic and financial developments.

- Recent increases in oil and gas drilling activity in response to higher energy prices were seen as a positive development for the investment outlook;

- Most participants expressed a view that it could well become appropriate to raise the target range for the federal funds rate relatively soon, so long as incoming data provided some further evidence of continued progress toward the Committee's objectives.

- Some participants noted that recent Committee communications were consistent with an increase in the target range for the federal funds rate in the near term or argued that to preserve credibility.

Oil prices static on uncertainty over planned production cut

Oil prices were little changed on Thursday as uncertainty ahead of a planned OPEC-led crude production cut and thin liquidity during the U.S. Thanksgiving holiday kept traders from making big new bets.

Brent crude futures were trading at $49.01 at 0711 GMT, up 6 cents from their last close.

U.S. West Texas Intermediate (WTI) crude was at $48.07 per barrel, up 11 cents from their last settlement.