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Dollar Rises Against Rivals

Dollar Rises Against Rivals

The U.S. dollar gained significant ground against most major currencies on Monday, after U.S. President said he has authorized the release of oil from the Strategic Petroleum Reserve to help keep oil markets well supplied.

Trump made these comments after drone attacks on an oil processing facility at Abquaic and the nearby Khurail oil field cut Saudi Arabia’s daily crude oil output in half.

Trump also tweeted that the U.S. is “locked and loaded” to the respond to the attacks, with Secretary of State Mike Pompeo pointing the finger at Iran.

The dollar index climbed to 98.71 and was last seen trading 98.65, up 0.4% from previous close.

The euro eased to $1.0994 but edged up slightly after that, advancing to $1.1003, still down by a good margin of about 0.6%.

The dollar gained about 0.62% against British Pound Sterling at 1.2427. Earlier, the sterling had dropped to a low of $1.1503.

The Japanese yen was down 0.06% at 108.15 yen.

Against the loonie, the dollar was down 0.34% at 1.3241.

The Aussie was down 0.2% with the loonie-dollar pair quoting at 0.6865.

Against Swiss franc, the dollar gained 0.22% at 9926.

In economic news, the Federal Reserve Bank of New York released a report showing New York-area manufacturing activity was little changed in the month of September.

the New York Fed said its general business conditions index dipped to 2.0 in September from 4.8 in August, although a positive reading still indicates an increase in regional manufacturing activity. Economists had expected the index to edge down to 4.0.

Later this week, the Federal Reserve is scheduled to announce its latest monetary policy decision, with the central bank widely expected to cut interest rates by another 25 basis points.

Trump has been pressuring the Fed for a larger rate cut, pointing to the stimulus announced by other central banks around the world.

“The United States, because of the Federal Reserve, is paying a MUCH higher Interest Rate than other competing countries,” Trump tweeted.

He added, “They can’t believe how lucky they are that Jay Powell & the Fed don’t have a clue. And now, on top of it all, the Oil hit. Big Interest Rate Drop, Stimulus!”

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