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Dollar slips lower vs. rivals, oil rout weighs

Published 04/18/2016, 08:26 AM
© Reuters.  Dollar falls against other majors currencies with oil market in focus
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Investing.com - The dollar slipped lower against the other major currencies in subdued trade on Monday, as sentiment waned after major oil producers failed to reach an agreement on an output freeze and as Friday’s downbeat U.S. data continued to weigh.

USD/JPY dropped 0.51% to 108.22.

A meeting of the world’s major oil producers in Doha, Qatar on Sunday ended without an agreement on curbing production intended to prop up prices.

The talks collapsed after Saudi Arabia demanded that Iran also join the agreement to cap output.

Iran had already declined to take parts in the talks and said it would not participate in an output freeze until its output levels return to where they were before international sanctions were imposed over its nuclear program.

The yen has strengthened broadly since the start of the year as investor uneasiness about negative-interest-rate policies in Japan and Europe also bolstered investor appetite for safe haven assets.

The strong yen is posing a challenge to the Bank of Japan’s attempts to shore up inflation and Japanese officials have indicated that they could intervene to weaken the currency.

EUR/USD rose 0.27% to trade at 1.1313.

The greenback remained under pressure after reports showing that U.S. industrial production fell more than expected in March and consumer sentiment deteriorated slightly this month.

The reports underlined the view that the Federal Reserve is likely to stick to a cautious approach on future interest rates increases.

Meanwhile, the dollar was higher against the pound, with GBP/USD down 0.16% at 1.4182 and was lower against the Swiss franc, with USD/CHF shedding 0.33% to 0.9647.

The Australian dollar was lower, with AUD/USD down 0.13% at 0.7715 and with NZD/USD gaining 0.35% to 0.6941.

Earlier Monday, data showed that New Zealand’s consumer price index rose 0.2% in the first quarter, compared to expectations for an uptick of 0.1%, after a 0.5% fall.

Year-on-year, consumer prices increased by 0.4%, in line with expectations.

Elsewhere, USD/CAD climbed 0.66% to 1.2899.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.17% at 94.53.

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