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The U.S. dollar rose against major currencies amid improved prospects for the U.S. economy and the fall in commodity prices.
Oil prices fell on Tuesday after the U.S. Energy Department reported that the increase in oil production in North America could lead to a positive shock to the terms of the proposal. "The shock to the supply side, due to the growth of oil production in North America will have a transformative effect on the market within the next five years, as was the case with the increasing demand in China for the past 15 years", - told the agency.
The yen traded at nearly five-year lows against the U.S. currency, which reached a level of 100 yen last week, continued growth on the scale of monetary stimulus adopted in Japan in April.
Investors are watching the rise of the U.S. dollar against the yen, which was also supported by data indicating that the economic recovery in the U.S. continues.
Import prices in the U.S. in April fell by 0.5%, which corresponds to the forecast of economists. This decline is mainly due to a decline in oil prices. This is the U.S. Commerce Department reported Tuesday.
The dollar index ICE, which tracks the greenback against a basket of six other major currencies, was at 83.328 against 83.276 late Monday in New York.
The dollar index WSJ, another indicator of the value of the U.S. currency against a slightly broader basket of currencies, was at 74.90 against 74.82.
Euro earlier rose against the dollar after data showed that industrial production in the euro area in March rose by 1% adjusted for seasonal variations. But the rise of the euro against the background of the industrial production data was limited by the German ZEW economic expectations index for May, which rose by 0.1 points to 36.4. Economists had expected the index to 39.5. In April, the index fell to 36.3, while analysts were expecting it to be 43.0.
Value of the pound fell against the dollar on speculation investors reduced their holdings UK currency, before the Bank of England tomorrow will present its latest inflation forecast. Note that sterling reached a two-week low against the U.S. dollar, even after showed that house prices in the UK rose to its highest level since June 2010.
Recall also that tomorrow, Bank of England Governor Mervyn King will be the last time at a press conference in his current role. The next month it will take the post of Governor Mark Carney, who is currently the head of the Bank of Canada.
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