WASHINGTON (dpa-AFX) - The U.S. Dollar value inched higher as rising crude oil prices due to renewed Middle East tensions pushed up inflation concerns, indicating the possibility of a tighter monetary policy by the U.S. Federal Reserve while investors geared up for the minutes of the U.S. Federal Reserve's June month meeting to be released this week.
The U.S. Dollar Index, DXY, which measures the Greenback against a basket of other major currencies was last seen trading at 101.09, down by 0.23 (or 0.23%) today.
On the economic front, the U.S. Automatic Data Processing data revealed that private employers added an average of 21,000 jobs per week over the four weeks ending June 20, indicating a slight decline from the previous period's 24,250 gain.
According to the Bureau of Economic Analysis, the U.S. trade deficit widened sharply to $77.60 billion in May from a revised $54.60 billion in April, broadly in line with market expectations of a $78.50 billion shortfall.
While against the Euro, the USD was trading at 1.141, up by 0.26%, against the GBP, the USD was trading at 1.335, up by 0.24%.
Against the USD, the Japanese Yen was trading at 162.100, down by 0.02% and the Swiss Franc was trading at 0.808, down by 0.44%.
Against the USD, the Canadian Dollar was trading at 1.420, up by 0.02%.
Canada posted a trade surplus of C$4.24 billion in May, inching higher from an upwardly revised C$3.41 billion surplus over the previous month and above market expectations of a C$2.90 billion to mark a third consecutive positive balance of trade.
Exports rose by 0.90% to a record high of $77.10 billion, a fourth consecutive increase.
Imports edged down 0.20% month-over-month to C$72.86 billion in May after reaching a record high in April.
Against one unit of Australian Dollar, the USD was trading at 0.693, up by 0.33%.
According to the U.K. Maritime Trade Operations center, today three tankers were hit by projectiles while traveling across the Strait of Hormuz.
In the first attack, a Qatari tanker Al Rekayyat loaded with Liquified Natural Gas, sailing south along the Omanian waters was struck on its port side by an unknown projectile, nearly eight nautical miles east of Limah in Oman.
Iran's state media reported that the vessel came under attack after it ignored warnings but Iran did not claim for the assault officially.
According to Associated Press, one more oil tanker was hit on its left side while exiting the Omani-Emirati border while the other was struck by a drone off Oman. The two vessels sustained only minor damages and continued to navigate to their respective destinations.
Following these attacks, the UKMTO called on all vessels to sail with caution and immediately report about any suspicious activity.
These incidents sparked concerns of re-escalation as the U.S. could likely hit back on Iran, prompting Iranian retaliatory strikes.
As a result, crude oil prices moved higher due to fresh supply disruption threats.
The Fed's Dot Plot in June revealed that while some policymakers expected the rates to continue higher throughout the year, a few expected a hike in the near-term.
Traders await the minutes from the U.S. Federal Reserve's June month meeting to derive more insights on the Fed's policy outlook.
Currently, investors are betting on only a 27.30% chance of a quarter-basis-point interest rate-hike in the upcoming meeting of the U.S. Federal Reserve on July 28-29 while the bets on rates being held at the current level stand at 72.70%, according to the CME Group's FedWatch Tool.
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