Dollar Heads for Worst Day in Over a Month as Oil Prices Decline

1i)0kwkbbbs{illll]ojyu8f_media_dl_1.png BloombergArticle content(Bloomberg) — The dollar is headed for its worst day in over a month as hopes that shipping traffic through a key oil route will resume pushed oil prices lower. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe Bloomberg Dollar Spot Index fell on Monday from its highest level of the year, trading 0.6% lower for its biggest drop since Feb. 9. US crude sank below $100 a barrel as US President Donald Trump is raising pressure on nations to help reopen the Strait of Hormuz, a vital maritime thoroughfare linking the Persian Gulf to international markets.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle content“Oil markets continue to set the tone in FX, and Brent has softened a bit here as we emerge from the weekend with some marginal optimism regarding the outlook for passage through the Strait of Hormuz,” said Alex Cohen, a foreign-exchange strategist at Bank of America Corp. “The dollar looks to be consolidating a bit here, after ending last week on a high-note.”Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentEnergy prices and the greenback have been moving in tandem since the launch of US and Israeli strikes on Iran on Feb. 28, turning the dollar into a petrocurrency, according to some analysts, in part due to the US’s position as the world’s top oil producer and dollar’s role as the main currency for global crude trade. Article contentUS industrial production rose modestly in February, lifted by a second month of gains in manufacturing and mining output.

The Federal Reserve is expected to keep interest rates steady Wednesday as inflation concerns are elevated after the recent spike in oil prices. The Bank of England, European Central Bank and the Bank of Japan as well as the central bank of Australia are also deciding on rates this week among others. Article contentAll major currencies in the Group of 10 have lost ground against the dollar since the conflict erupted, with the yen lagging behind most peers. Authorities in Japan reiterated that they are ready to act to aid the local currency if necessary.Article content“As the war with Iran continues, oil prices are dictating the mood and headlines from the Strait of Hormuz are driving markets,” wrote Bob Savage, head of markets strategy and insight at BNY. “Concerns for the week revolve around how central bankers see through these matters.”Article content—With assistance from Carter Johnson.Article contentTrending Subscriber only.

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The United States is losing its grip on Canada's steel market Subscriber only Commodities Posthaste: Even Americans are getting fed up with Donald Trump's tariffs News Saint John's port is booming as Ontario shippers seek to dodge U.S. tariffs Economy Canada mulls joining U.K.-led response force as its military grows PMN Business Canada's inflation rate cools more than expected Economy