The U.S. dollar continued to suffer from mounting expectations the Federal Reserve will not increase interest rates in its meeting this month or the next one, with investors selling the greenback for higher yielding assets like oil and metals futures which benefited from the weakness of the dollar.
The dollar index last traded at 94.00, up barely 0.02% on the day and not far from an eight-month trough high yesterday at 93.74. The dollar made further inroads against Japan's yen however, rising 0.36% to trade at 108.33, while the euro inched up 0.05% versus its U.S. partner to hover around 1.1412.
Oil prices on the other hand stood tall near multi-month highs hit yesterday, as investors keep the hope of a deal later this month to cap global production volumes in order to ease the persistent supply glut and buoy prices, despite Iran's disagreement of the proposed deal.
Brent crude futures last traded at $42.74 a barrel, down nine cents on the day, or 0.21%, near a multi-month high at $43.00, while U.S. crude futures gave up ten cents, or 0.17% to hover around $40.29 a barrel, firming above the important level of $40.
Investors wait for later data today, with Britain's CPI for March expected to pop up 0.3% y/y, same as February, which would be largely positive news for the royal currency.
From the U.S., import prices for March as well are expected to have jumped 1.0% m/m, compared to February's 0.3% dip, which would indicate higher inflation rates in the first quarter, helping the dollar.