Dollar drops on oil data, Iran test

The US dollar declined Wednesday on a gain in oil prices after Iran tested a missile that it said can reach Israel and on a decline in US oil inventories while the euro was helped by heightened sentiment that the European Central Bank will have to raise interest rates again soon in an attempt to control inflation.

In late-morning trade in New York, the dollar had dropped to $1.5743 to the euro while it took ¥107.0900 to buy a dollar.

Meanwhile, the Canadian dollar advanced against its US counterpart, with the loonie trading at C$1.0118 to the dollar after a report showing that there were more housing starts than expected in Canada in May and on the gain in oil prices.

The South African rand made gains on the news that talks toward a possible merger between Africa’s biggest mobile-phone operator and an Indian communications group had been extended.

The rand traded at R7.6865 to the greenback while it was at R12.100 to the euro and it cost ¥13.945 to buy a rand.

The euro traded about even in relation to the yen at ¥168.5918 to the shared currency while the pound gained on the euro to 79.52p.

Story link: Dollar drops on oil data, Iran test