Share

Dollar rebounds with oil as pound falls on Brexit

London - The dollar rebounded with oil and gold fell, as investors focused on President Donald Trump’s plans to boost growth. The pound fell after a UK court ruled that Parliament must vote on triggering Brexit.

The greenback advanced against most major currencies, reversing declines sparked after Treasury Secretary nominee Steven Mnuchin said a strong US currency could have a negative short-term effect on the economy. 

The pound extended losses after judges ruled Prime Minister Theresa May must ask Parliament to trigger the two-year countdown to the UK’s departure from the European Union, handing lawmakers a chance to soften the plan. Gold fell after touching the highest since November while oil climbed above $53 a barrel.

President Trump  promised a “very major” border tax and signed an executive order to withdraw the US from the Trans-Pacific Partnership deal, fanning optimism that greater investment will boost growth. Encouragement for dollar buying and a further selloff in bonds could come from any elucidation on the president’s fiscal agenda, according to Kit Juckes, global strategist at Societe Generale SA.

“The driver of a shift higher will be optimism that President Trump’s policies deliver more growth,” Juckes said. “If he starts tweeting about fiscal policy instead of trade policy maybe the bond bears can come out of hibernation again.”

Here are the main moves in markets:

The Bloomberg Dollar Spot Index added 0.1% by 12:12, after dropping as much as 0.3% earlier. It was 0.3% higher against the euro.

The pound slipped 0.4% to $1.249. European stocks halted a three-day decline, led by Italian shares amid reports that Assicurazioni Generali SpA may get investment from Intesa Sanpaolo SpA and Allianz.

West Texas Intermediate crude rose 0.9% to $53.21 a barrel as Iraq said it’s close to implementing its share of pledged output curbs agreed with OPEC to trim bloated global inventories and stabilize the market.

Oil slid 0.9% the previous session after US drillers added the most rigs in more than three years. The yield on the 10-year Treasury rose three basis points to 2.42%.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.99
-0.2%
Rand - Pound
24.14
-0.1%
Rand - Euro
20.64
-0.2%
Rand - Aus dollar
12.39
+0.2%
Rand - Yen
0.13
+0.5%
Platinum
911.88
-1.3%
Palladium
1,019.74
-4.3%
Gold
2,159.43
-0.1%
Silver
25.10
+0.2%
Brent Crude
86.89
+1.8%
Top 40
66,252
0.0%
All Share
72,431
0.0%
Resource 10
53,317
0.0%
Industrial 25
100,473
0.0%
Financial 15
16,622
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders