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Daily Review 17.10.2016

Dollar reaches its seven-month high after upbeat U.S. data, yields rise

The dollar went up to a seven-month high versus other currencies on Monday, retaining momentum from upbeat U.S. data last week that augmented expectations of a December interest rate by the Fed.

U.S. yields rose to four-month highs also bolstered up the dollar.

The dollar index went up 0.1 percent at 98.095 .DXY after touching 98.158, its highest since March 10.

The U.S. currency lost a bit from its Japanese peer, sliding 0.1 percent to 104.110 yen JPY= after rising to as high as 104.480 on Friday.

The euro was flat at $1.0970, hovering close to a near three-month low of $1.0964 EUR= unraveled earlier on Monday.

The pound slipped 0.3 percent to $1.2156 GBP= D4. Australian dollar was down 0.4 percent at $0.7586 AUD=D4, decreasing some of its gains made on Friday on the rebound in commodity prices.

Oil prices gets pulled by rising U.S. drilling, dollar strengthens

Oil prices fell on Monday, pulled down by the rise in rig count in the United States, a strong dollar and record OPEC-output which comes amid slowing global economic growth that could deflate fuel demand.

U.S. West Texas Intermediate (WTI) crude oil futures were trading at $50.16 per barrel at 0115, down 19 cents from their last settlement.

International benchmark Brent crude oil futures LCOc1 were also down, shedding 11 cents from their last settlement to $51.84 per barrel.

Since oil is traded in dollar, a stronger dollar makes it more expensive for countries using other currencies to purchase fuel, potentially undermining demand.

OPEC is scheduled to have a meeting on November 30 to discuss a production cut. The producer cartel hopes non-OPEC members, particularly Russia, will join the potential cut.

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