Euro hovers near four-month high on US interest rate prospects
Euro rose in European trade against a basket of major rivals for the third straight session against dollar, almost hitting four-month highs amid fading concerns about the widening policy gap between the US and Europe.
The dollar fell to near three-month lows under pressure from Fed's minutes, which bolstered the case for a 0.5% rate hike in December.
EUR/USD rose 0.5% to 1.0448, after closing up 0.9% yesterday, the second profit in a row, as risk appetite improved.
Four-Month Peak
Euro hit four-month highs at 1.0481 on November 15 before entering a descending wave on profit-taking.
Current gains amid fading concerns about the policy gaps between the US and Europe, with the ECB expected to increase interest rates by 75 basis points in December.
It's now also widely expected the Fed will increase rates by only 0.5% next month instead of 0.75%.
The Dollar
The dollar index fell 0.4% on Thursday, sharpening losses for the third day in a row, and hitting three-month lows at 105.34 against a basket of major rivals.
Fed's minutes yesterday showed US policymakers are content about the slowdown in inflation, and are moving toward smaller rate hikes.
US crude stocks fall more than expected
The Energy Information Administration reported a tumble in US crude stocks by 3.7 million barrels to 431.7 million barrels, while analysts expected a drop of 2.5 milllion barrels.
Gasoline stocks rose 3.1 million barrels to 211 million barrels, while distillate stocks rose 1.7 million barrels to 109.1 million barrels.