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Dollar climbs back as oil edges lower

Dollar climbs back as oil edges lower

The dollar turned up against the major currencies Friday morning as oil retreated once again.
On Thursday, the dollar lost more than a cent against the 15-nation euro after an index of future economic activity dropped sharply, oil jumped almost $6 a barrel, and concern over the financial sector arrested dollar buys.
The euro fell to $1.4808 in early New York trading Friday from $1.4877 late in New York the night before.
Light, sweet crude oil futures fell $1.52 to $119.56 a barrel in premarket electronic trading on the New York Mercantile Exchange.
Investors have used oil as a hedge against a slumping dollar. The prices of oil and gold tend to move inversely to the dollar.
The British pound, meanwhile, erased its Thursday gains entirely, dropping to $1.8556 from $1.8751. On Wednesday, the pound was worth $1.8615.
On Friday, the British government said that economic growth in the U.K. was flat in the second quarter, the first time the economy didn't grow for almost 16 years. Economists say contraction in the July-September period is likely, meaning Britain could be in a recession. The U.K. housing market is the worst in 30 years, while inflation is twice the recommended government limit.
On Thursday, the New York-based Conference Board said its monthly forecast of future economic activity fell 0.7 percent in July, far more than the consensus estimate of a 0.2 percent decline by Wall Street economists surveyed by Thomson/IFR.
The dollar also rose to 109.85 Japanese yen from 108.65 yen.


Updated : 2021-01-25 06:44 GMT+08:00