FX Roundup: Commodity currencies, pound see upticks

The pound and selected commodity currencies registered modest rises against the dollar on Tuesday, as oil prices alternated between highs and lows either side of the $30 per barrel level for much of the trading session.

At 1603 GMT, the dollar was up 0.16% against the yen exchanging at JPY118.49. In tandem, the pound rose 0.53% while the euro fell 0.04% to exchange at $1.4324 and $1.0845 respectively, with the latter shedding the previous session’s marginal gains.

Continuing with major crosses, the greenback rose 0.51% against the Swiss franc exchanging at CHF1.0180, staying above parity in its favour during late European trading. The greenback also traded lower against selected commodities linked including the Norwegian Krone changing hands at NOK8.7140 down by 0.52%.

The Australian dollar rose against its US counterpart by 0.69% changing hands at US$0.7003, while the New Zealand dollar climbed by 0.50% changing hands at US$0.6486. The greenback also slipped against the Canadian dollar down 1.41% changing hands at CAD$1.4090.

Kit Juckes, head of forex at Societe Generale, said, “The fall in oil prices will make most of the headlines and drive most of the movement in markets on Tuesday, unless it is reversed for no particularly good reason. The latest driver is the news that Iraqi oil output is strong. US production remains the key swing on supply and is what will eventually trigger a turn.

“But it will take hard news about declining US output to shift the market mood. In the meantime, as prices fall so equities will be weak, CAD will fall, AUD and NZD won't get much help and the dollar, yen and euro will be well-supported.”

Finally, in Latin America, the dollar registered declines of 0.30%, 1.03% and 0.70% against the Chilean, Colombian and Mexican pesos, changing hands at CLP$718.54, COP$3,363.00 and MXN$18.4725 respectively.