The US dollar fell against its peers on Thursday, deepening its losses for the second straight day and gave up its 13-month peak on profit-taking, in addition to a drop in the US T-bond yields, and ahead of key US data on the weekly jobless claims and producer prices.

The dollar index fell 0.3% to the lowest since October 4 at 93.75 points, after opening at 94.02 points, and hit a high at 94.08 points.

The index lost 0.5% yesterday, the first daily loss, after hitting its 13-month high of 94.56 points.

The dollar index was hurt as well by the recent decline in 10-year US treasury yields following latest Fed's minutes.

The minutes showed the Fed might start cutting down its bonds purchases program by November, but members remained divided on the size of the threat that inflation represents to the economy.

At 12:30 GMT, the unemployment claims for the week ending October 8 are expected down to 315K from 326K in the previous week.

At the same time, the US Producer Price Index is expected up by 7.1% y/y in September from 6.7% in August, and to rise by 0.6% m/m from 0.7%.

Sterling rose in European trade against dollar for another session, marking two-week highs as dollar's gains were curbed after the Federal Reserve's policy meeting.

GBP/USD rose 0.3% to 1.3699, the highest since September 28, after a session-low at 1.3651.

GBP/USD rose 0.5% in the first profit in four days as the greenback declines against a basket of major rivals. 

The dollar index fell 0.15% on Thursday, the second loss in a row, marking week lows at 93.86, away from 13-month high at 94.56.

The dollar index was hurt as well by the recent decline in 10-year US treasury yields following latest Fed's minutes.

The minutes showed the Fed might start cutting down its bonds purchases program by November, but members remained divided on the size of the threat that inflation represents to the economy.

Otherwise, sterling is boosted by inflationary pressures in Britain, in turn expected to nudge the Bank of England towards some policy tightening measures.

Oil prices rose on Thursday, for the second day in a row, rising near multi-year highs, thanks to record natural gas prices, but today's gains are curbed by a build in US crude inventories.

US crude rose 1.1% to $81.39 a barrel, after opening at $80.53, and hit a low at $80.43, and Brent crude rose 0.9% to $84.22 a barrel, after opening at $83.46, and hit a low at $83.20.

The US crude gained less than 0.1% yesterday, resuming gains after taking a pause due to profit-taking from a 7-year high of $82.15, and Brent crude rose 0.2%, near its 3-year high of $84.58 a barrel.

Oil prices are rising due to growing fears over a market deficit, especially after OPEC Plus alliance's recent decision to keep its current production policy without any new production hikes.

Meanwhile, global demand for oil is growing, especially due to the global shifting from gas to oil, after the recent record spike in natural gas prices.

The American Petroleum Institute reported in preliminary data that the US crude inventories rose 5.2 million barrels to 429 million barrels during the week ending October 8, which is the highest level since the week ending September 3, while analysts forecast a rise by 0.7 million barrels.

The US Energy Information Administration's official data will be released later today, amid forecasts for inventories to drop by 1.1 million barrels.

Gold prices rose on Thursday, extending gains for the third straight day, and hit a 4-week high while near breaking the $1800 barrier, following a drop in the US T-bond yields after the US Fed meeting minutes.

Gold prices rose 0.3% to the highest since last September 15 at $1,797.49 an ounce, after opening at $1,792.66, and hit a high of $1,786.58.

Gold closed higher by 1.9% yesterday, the largest daily gain since March 9, thanks to strong demand.

The 10-year US Treasury yield fell 0.5% today, deepening losses for the third straight day, and pulled back further from a 4-month high of 1.636%, which lifts demand for gold.

The Federal Reserve's meeting minutes showed that the US central bank would start cutting its bond-buying program by mid-November, but monetary policy makers remained divided over the high inflation and the extent of the need for an interest rate hike.

Gold stocks at the SPDR ETF fell 2.33 metric tonnes yesterday, with the total at the lowest level since April 3, 2020 of 982.72 metric tonnes.