• The U.S. dollar extended its recent rout to hit three-year lows and gold rose to its highest level in 1-1/2 years on Wednesday after U.S. Treasury Secretary Steven Mnuchin said he welcomed a weakening in the dollar.
The dollar .DXY fell 0.98 percent against a basket of currencies after U.S. Treasury Secretary Steven Mnuchin welcomed the currency’s weakness.
Worries about a protectionist stance have added to the dollar’s woes after Trump slapped steep tariffs on imported washing machines and solar panels on Monday.
The dollar index .DXY, which measures the greenback against a basket of six major currencies, was down 1 percent at 89.198, slipping below 90 for the first time since December 2014. The dollar was down about 1 percent against the yen JPY=.
• The euro steadied ahead of the European Central Bank’s policy decision. The single currency took a breather from an overnight rally, easing 0.1 percent to $1.2396. It had soared 0.9 percent to $1.2415 on Wednesday, its highest since December 2014.
• The euro zone economy may be roaring ahead but a rapidly strengthening euro may see European Central Bank President Mario Draghi pour cold water on the view the bank is speeding toward an interest rate hike.
Draghi is expected to keep the ECB’s 2 trillion euro (£1.8 trillion) asset buying program in place for now at Thursday’s ECB governing council meeting, while acknowledging Europe’s unexpectedly strong run of growth.
The ECB is unlikely to announce a clear timeline for its exit strategy in January, but many now expect it to come in the first six months of the year.
• U.S. President Donald Trump said on Wednesday he would be willing to be interviewed under oath by Special Counsel Robert Mueller, who is investigating Russian meddling in the 2016 U.S. election.
• President Donald Trump on Wednesday previewed his outline for an immigration bill that he will promote next week, saying he wants $25 billion to build a border wall and is open to granting citizenship to “Dreamer” immigrants brought to the United States as children.
• U.S. President Donald Trump said on Wednesday that his long-awaited plan to help rebuild the nation’s infrastructure would result in about $1.7 trillion in overall investment over the next 10 years, a larger figure than he previously announced.
• North Korea sent a rare announcement addressed to “all Koreans at home and abroad” on Thursday, saying they should make a “breakthrough” for unification without the help of other countries, its state media said.
It said all Koreans should “promote contact, travel, cooperation between North and South Korea” while adding Pyongyang will “smash” all challenges against reunification of the Korean peninsula.
• Oil prices rallied on heavy volume on Wednesday, boosted by a record 10th straight weekly decline in U.S. crude inventories, though reduced refining activity and rising production signaled U.S. stocks could rise in coming weeks.
U.S. West Texas Intermediate (WTI) futures settled up $1.14, or 1.8 percent, to $65.80. Brent futures gained 57 cents to $70.53 a barrel. Both benchmarks were at their highest since December 2014.
Reference: Reuters
Thai
Eng