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Dollar falls against rivals as sentiment wanes

Published 04/20/2016, 08:28 AM
© Reuters.  Dollar loses ground vs. other majors, U.S. data on tap
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Investing.com - The dollar fell against the other major currencies on Wednesday, as market sentiment waned amid declining oil prices and as investors awaited the release of U.S. existing home sales data later in the day.

USD/JPY was little changed at 109.16.

Oil prices moved lower as a three-day oil worker strike in Kuwait, which had cut the country’s crude production nearly in half, ended late Tuesday.

The end of the strike revived concerns sparked by the failure of major oil producers to reach an agreement on Sunday on a production freeze.

Meanwhile, sentiment on the greenback remained fragile after data on Tuesday showed that U.S. building permits fell unexpectedly by 7.7% in March to 1.086 million units, while housing starts declined by 8.8% to 1.089 million units.

EUR/USD edged up 0.21% to trade at 1.1383.

Meanwhile, the dollar was steady against the pound, with GBP/USD at 1.4395 and was fractionally lower against the Swiss franc, with USD/CHF easing 0.09% to 0.9609.

The U.K. Office for National Statistics reported on Wednesday that the unemployment rate held at 5.1% in the three months to February, in line with expectations.

However, the claimant count unexpectedly rose by 6,700 in February, compared to expectations for a decrease of 11,300 people, and following a drop of 9.300 a month earlier. It was the first claimant count rise since August 2015.

The average earnings index, including bonuses, rose by 1.8% in the three months to February, below forecasts for a 2.3% increase. Excluding bonuses, wages rose by 2.2%, in line with forecasts.

The Australian dollar was higher, with AUD/USD up 0.12% at 0.7821, while NZD/USD dropped 0.47% to 0.7011.

Elsewhere, USD/CAD was little changed at 1.2667, just off the previous session’s nine-month low of 1.2631.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.16% at 93.93.

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