The dollar regained its positive momentum yesterday, however limited, as trades braced for a meeting by the Organization of the Petroleum Exporting Countries (OPEC) later in the day which could spark volatility in financial markets and weigh on the U.S. currency.
The dollar reached once again the 113 levels against the yen on on robust revised U.S. GDP data but had failed to sustain the gains as U.S. yields, a key driver of the dollar recently, initially pulled back from 16-month highs before rising in Asia on Wednesday.
The rate hike talks and the stronger dollar, dampen gold price. The Fed is expected to raise interest rates next month and bolster the U.S. currency. This will make commodities a bit more expensive for global buyers.
Oil prices have edged up overnight ahead of an OPEC meeting later in the day, with members of the producer cartel trying to thrash out an output cut to curb oversupply that has seen prices more than halve since 2014. Traders said markets were jittery, and that prices could sharply swing either way depending on developments at the Organization of the Petroleum Exporting Countries (OPEC) meeting in Vienna. Oil dropped nearly 4 percent the previous session over disputes between Saudi Arabia, Iran and Iraq regarding details of the planned cut.
U.S. stocks were higher after the close on Tuesday, as gains in the Healthcare, Financials and Utilities sectors led shares higher.