The US dollar attempted to rally against other most-traded currencies this week but found limited success. The greenback gained on the euro and the Japanese yen but fell against the Great Britain pound and commodity currencies.
The dollar has found a surprise ally in the form of the crude oil rally. Unlike most of the times, the resulting positive market sentiment was helpful to the currency in this instance, leading to speculations that improving global growth will encourage the Federal Reserve to continue monetary tightening. The greenback lost this supportive factor by the weekend as prices for crude went down.
As one could expect, the rally of oil was more helpful for currencies linked to raw materials, therefore they were stronger than the dollar. Now, traders wait for meeting of major oil producers on Sunday to see what steps they will take to support oil prices and what effect the gathering will actually have on crude.
EUR/USD fell 1% from 1.1413 to 1.1282 over the week. USD/JPY gained from 107.97 to 108.71, reaching the weekly high of 109.72. GBP/USD was up from 1.4113 to 1.4194, and its weekly maximum was at 1.4348. USD/CAD dropped 1.3% from 1.2985 to 1.2833.
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