Dollar Firmes as Oil Prices Resume Gains
The U.S. dollar strengthened on Thursday (Apr. 16) for the first time in nine sessions, alongside renewed demand for long-volatility positions. The move came even as President Donald Trump said prospects for a deal with Iran were “looking very good,” suggesting markets were focusing more on oil-price dynamics and U.S. yields than on diplomatic optimism alone.
The Bloomberg Dollar Spot Index fell as much as 0.2% in the Asian session to its lowest level since March 2, before reversing to finish up 0.1% on the day. The dollar’s rebound tracked higher oil prices and firmer U.S. rates, with the 10-year Treasury yield up 2 basis points on Thursday.
FX price action highlighted a commodity-sensitive rotation. The Norwegian krone and Canadian dollar outperformed as oil rose, while the euro, pound and yen weakened. EUR/USD reversed to slip 0.2% to 1.1780, with reports suggesting some ECB officials are leaning toward keeping rates unchanged this month. Euro-zone inflation for March was also reported as faster than initially estimated, pointing to firmer price pressures linked to the Iran war.
In Asia-Pacific, AUD/USD rose as much as 0.4% to 0.7197, its highest level since June 2022. USD/JPY edged up 0.1% to 159.19, rising for a fifth time in six days, while yen volatility skew shifted lower this week as traders positioned for a rebound even as expectations for materially wider ranges remained relatively muted.
GBP/USD fell 0.3% to 1.3527 for a second day of declines. In the UK, data showed the economy expanded more strongly ahead of the Iran war: GDP grew 0.5% in February, well above the 0.1% expected and the strongest monthly reading since January 2024.
Source : Newsmaker.id
