USD gains on lower oil prices

Story link: USD gains on lower oil prices

The US dollar made gains in relation to the euro after oil prices fell again in reaction to higher than expected stockpiles in the United States and after the decline in oil prices sent equities markets higher.

A quarterly report from Wells Fargo (NYSE: WFC) that saw quarterly profits better than expected also helped the greenback’s gains.

At around 1 p.m. in New York, the dollar was trading at $1.5840 to the euro while it took ¥104.63 to buy a dollar.

The Australian dollar also lost ground to the US dollar, trading at 97.45 cents US to the Aussie on comments from the governor of the Reserve Bank of Australia indicating that inflation there is expected to slow, making it less likely that interest rates will rise there any time soon.

Meanwhile, the Canadian dollar declined in relation to the greenback, to C$1.0013 to the dollar, as oil prices fell.

The Swiss franc was up early versus the euro on speculation that US bank losses will dim investor demand for carry trades financed by the low-yielding franc and on a report that retail sales in Switzerland were up 7.4 percent in May from the same time last year, but the Swiss currency later lost some of the ground it had gained.

In early afternoon trade in New York, the Swiss franc traded at SFr1.6255 to the euro while it was at SFr1.0262 to the US currency.