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Evergreen buck goes down as oil surge backs commodity currencies
On Tuesday, the evergreen buck was suppressed by a combination of downbeat American economic data as well as gains for commodity-linked currencies, including the Australian and Canadian dollars that lent support from an extended ascend in crude prices.
Assessing the greenback’s purchasing potential versus a number of its key rivals the USD index slumped by 0.05% hitting 97.001 having dived by 0.35% yesterday, thus marking its most impressive daily tumble since March 20.
On top of the pressure from buoyant commodity-linked currencies, the evergreen buck dollar was suppressed by data disclosing that American durable goods orders went down in February and a rebound in the common currency as traders squared positions ahead of a looming ECB meeting.
The recent rebound in American yields failed to provide much lift for the evergreen buck as they are still at low levels.
As a matter of act, the 10-year Treasury yield rebounded to 2.52%, drifting further away from a 15-month minimum of 2.34% recorded at the end of March. By the way, the yield was still considerably below its recent maximum of 2.8% recorded in early March.
As for the Canadian dollar, it was nearly intact, showing C$1.3312 per dollar having soared by over 0.5% overnight.
Additionally, the Australian dollar stood still, sticking with $0.7128 having rallied by 0.3% yesterday.
Crude prices have tacked on to five-month maximums on hopes that global supplies would tighten because of fighting in Libya, American sanctions against Venezuela and Iran, and OPEC-led cuts.
Aside from that, the Norwegian kroner managed to hold its gains, demonstrating 8.543 per dollar having surged by 0.7% yesterday on higher crude.
The common currency didn’t change, ending up with $1.1265 having rallied by 0.4% on Monday.
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