Dollar falls ahead of US midterms as oil plummets
· CNA · JoinRead a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST
NEW YORK, Nov 2 : The dollar eased on Monday as oil prices plunged and Treasury yields retreated ahead of a week full of catalysts, including the US midterm elections, a host of data on the US labor market and multiple central bank rate decisions.
Crude prices tumbled about 7 per cent as continuing talks between Iranian and Qatari officials on ending the US-Israeli war with Iran lifted hopes for reduced disruptions to supply from the Middle East.
The easing of oil prices initially helped buoy US equities, although technology stocks were weaker again as iPhone maker Apple dipped about 2 per cent ahead of its quarterly earnings and Oracle slumped more than 8 per cent on plans to raise $20 billion through bond and share sales.
Growing concerns about massive spending by companies on the emerging AI technology have weighed on stocks in recent weeks, helping to support the dollar as a safe-haven play.
CNA Games
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Show More
Show Less
"What we have broadly is just a resilient market. Oil prices, the December WTI tested 105 on Friday, and we're below 100 now," said Marc Chandler, chief market strategist at Bannockburn Capital Markets in New York.
"When we went into the weekend, everything looked bad. Stocks had sold off, oil was at new contract highs in the December WTI. And we come back from the weekend, and this is a collective sigh of relief."
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.22 per cent to 101.76after declining to 101.42, its lowest since September 30.
The euro was up 0.3 per cent at $1.1192, even after late Friday's revision by Fitch of France's outlook to "negative" from "stable" on worsening debt dynamics.
MANUFACTURING INDEX RISES IN OCTOBER
On the data front, the Institute for Supply Management said its manufacturing Purchasing Managers' Index (PMI) increased to 55.5 last month from 54.5 in September, while input prices remained elevated.
Markets will also deal with a flurry of data on the labor market this week, culminating on Friday with the government's key October payrolls report.
The S&P Global Eurozone Manufacturing PMI showed manufacturing activity growth in the region held up well in October, albeit easing as new order growth slowed and rising costs from energy and supply-chain disruptions squeezed margins.
Multiple central banks are scheduled to issue policy statements this week, including those in Britain, Australia, Norway and Sweden.
CRYPTO MARKETS STEADY AFTER BINANCE HACK
In cryptocurrencies, bitcoin fell 1.5 per cent to $76,645.42 and ether declined 1.14 per cent to $2,236.50, steadying slightly but remaining near lows hit last week following the record $6.3 billion heist at Binance, the world's largest crypto exchange.
Binance's customers have withdrawn almost $5 billion from the world's biggest cryptocurrency exchange since it reopened after the hack, the company said.
Americans head to the polls on Tuesday to determine whether Democrats can wrest control of Congress from US President Donald Trump's Republican Party, with the economy and high prices key issues among voters. Democrats are widely predicted to win the House of Representatives, but wresting control of the Senate may prove more difficult.
Sterling strengthened 0.1 per cent to $1.3406. PMI data showed British manufacturers started the final quarter of 2026 with the strongest output growth in more than two years, although fast-rising costs may worry the Bank of England, which looks set to raise interest rates this week.
Against the Japanese yen, the dollar strengthened 0.23 per cent to 157.89. Japan's real interest rates have risen recently, especially in the long- and super-long zones, the central bank said in a full version of its quarterly outlook report.
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Sign up for our newsletters
Get our pick of top stories and thought-provoking articles in your inbox
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app