After rising for the most part of the Asian hours, the U.S. Dollar (CURRENCY:USD) has pared its gains against the Yen and the Euro. The weakness in the currency came after a report from Deloitte indicated that roughly one-third of oil companies can go bankrupt if oil prices continue to fall.
Three critical areas
Though oil prices remain steady on speculations of the meet between Russia and OPEC members, investors’ appetite for yen remains unabated. After pushing higher against the euro and yen, the greenback has lost its momentum against them during the late Asian hours. EUR/USD was seen trading 0.10% higher at 1.1167 while the USD/JPY had inched down by 0.20% to 114.37.
In the eurozone, data on consumer inflation in U.K. will be key to watch for today. Meanwhile, it appears that the market has already digested Japanese Prime Minister, Shinzo Abe’s statement to contain excessive volatility in Yen. Moreover, the sentiment is highly guided by global financial conditions, oil prices and the Chinese economy, according to experts. Any swings in these areas could prompt investors to rush for safe haven asset, which is seen as the main cause of the weakening of the dollar.
Spending improves in Australia
The dollar pared its gains against the Swiss Franc after it rallied by more than 1% this week. USD/CHF slipped 0.03% to 0.9866. Up ahead in the day, investors will closely track the manufacturing activity in the New York region to assess the direction of the economy and possible rate hikes.
On the other hand, the Australian dollar stood tall against its U.S. counterpart after the Reserve Bank of Australia released the minutes of its latest policy meet held in February. According to which, the Central Bank reported that the consumer spending and house building has surged on account of record-low interest rates. Additionally, lower currency has helped businesses to maintain their competitiveness. The report led AUD higher by 0.30% to 0.7160 against the U.S. Dollar.