Dollar gains on euro, yen

The US dollar was about even in relation to the euro and up slightly against the yen on Wednesday ahead of the latest decision on US interest rates by the Federal Reserve and after crude oil prices fell after the US Energy Information Administration said that oil stockpiles grew more than expected last week.

Near midday in New York, the dollar traded at $1.5567 to the euro while it took ¥108.3050 to buy a dollar.

The euro was up in relation to the yen, which traded at ¥168.6038 to the shared currency after Jean-Claude Trichet, president of the European Central Bank, said that interest rates could go up soon in the Eurzone but that did not mean a series of hikes.

Interest rate speculation drove gains for the South African rand, which was stronger against all major currencies on new data which showed inflation rising there.

The rand traded at $7.8955 to the US dollar and at $12.296 to the euro at around noon in New York, while it took ¥13.706 to buy a rand.

The Australian and New Zealand dollars both gained on the greenback and the yen on the possibility that the Federal Reserve will put off raising US interest rates for awhile yet.

It took 95.41 cents US to buy an Australian dollar and the New Zealand dollar was worth 75.61 cents US while the Aussie gained on the yen at ¥103.3480 while the kiwi also rose slightly against the Japanese currency, to ¥81.887.

Story link: Dollar gains on euro, yen