Wednesday, 13 Jan 2010

Dollar is Mixed as Crude Oil Prices Continue to Drop

In New York trading the dollar was weaker versus the major currencies after the Fed released its Beige Book, claiming the economy is improving slightly. The Treasury Department also influenced the market today with the release of last month's U.S. budget deficit of $91.8B.

The greenback was trading slightly lower against the euro as the EUR/USD is currently floating near the 1.4510 level. The USD was also stronger against the yen as the pair climbed back to the 91.40 price after four consecutive days of declines.

The pound was trading higher across the board after a Bank of England official noted the time was approaching to decide on the fate of when to tighten British monetary policy. This helped drive the GBP/USD to a 25-day high. The pair is currently trading at 1.6281 after opening the day at 1.6187.

Spot crude oil prices fell for the third consecutive day to $79.66. The drop in the price was intensified after a rise in crude oil inventories was reported by the Energy Information Administration.