The euro moved higher against the U.S. dollar later Tuesday as the dollar index surrendered its morning bounce, reversing the direction of the session’s early dollar move.
Reuters put the euro at $1.1229, up 0.17% for the day, and the dollar index at 101.75, down 0.22%, in a report published at 12:54 p.m. ET (16:54 UTC). An earlier FXStreet report, published at 5:39 a.m. ET (09:39 UTC), placed the euro near $1.1213 and the index at 101.91 after a rebound from 101.74. FXStreet said the index was still down 0.13% for the day.
FXStreet attributed the dollar’s morning rebound partly to rising oil prices. Its report cited West Texas Intermediate crude at $100.20 per barrel, up 2.15%, without identifying the contract month. Separately, the Oil Price Information Service reported December WTI, the more actively traded contract, near $97.55 per barrel at noon ET (16:00 UTC); the expiring November contract was near $102.70. The delivery month for FXStreet’s quote was not specified.
The European Central Bank’s daily reference rate was $1.1215 per euro Tuesday, compared with $1.1225 Monday. The reference rate is separate from intraday trading prices. The euro’s Monday weakness amid concern about unrest in France was covered in EconoTimes’ earlier reporting on the currency.
The ECB raised its three key interest rates by 25 basis points on Sept. 10, citing inflation pressure from the Middle East conflict. Its account of that meeting said energy costs had shaped investors’ expectations for inflation and interest rates. In an Oct. 19 note, MUFG Research’s Lee Hardman said artificial intelligence optimism had supported demand for U.S. assets and helped underpin the dollar; he also identified French fiscal and political risks as a possible drag on the euro. Those were broader market assessments, not explanations given for Tuesday’s moves.
The Federal Reserve’s next scheduled meeting is Oct. 27-28. The ECB’s next policy meeting concludes Oct. 29 in Frankfurt.
