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Forex - Dollar pushes higher as traders look to OPEC

Investing.com -

Investing.com - The dollar pushed higher on Wednesday, but gains were held in check as oil ministers gathered for a crunch OPEC meeting which could spark volatility in financial markets.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.24% to 101.22, below the almost 14-year highs of 102.07 reached last Thursday.

Demand for the dollar continued to be underpinned after upbeat U.S. economic reports on Tuesday supported the case for higher U.S. interest rates.

U.S. third quarter growth was revised up to 3.2%, its strongest rate in two years, according to the Commerce Department.

Separately, the Conference Board's consumer confidence index rebounded sharply in November after declining in October.

The reports come ahead of key reports later this week on manufacturing and jobs growth.

Also Tuesday Federal Reserve Governor Jerome Powell said the case for raising interest rates has strengthened since the central bank's meeting earlier this month, lending further credence to the view that the Fed will raise rates in December.

According to Investing.com's Fed Rate Monitor Tool, 100% of traders expect the Fed to raise interest rates at its policy meeting in December.

Higher rates typically support the dollar by making the currency more attractive to yield-seeking investors.

The dollars gains were checked as the Organization of the Petroleum Exporting Countries held talks in Vienna on a deal to curb output and shore up oil prices .

But doubts remained over whether the talks would yield an agreement and fresh falls in oil prices could impact on risk appetite.

The dollar gained ground against the yen, with USD/JPY rising 0.32% to 112.73, still well below the eight-month high of 113.89 set on Friday.

The euro remained under pressure, with EUR/USD at 1.0640.

Sentiment on the single currency was hit by concerns over the health of Italy's banking system ahead of Italy's upcoming constitutional referendum on December 4, which could see the government resign.

Sterling was little changed against the dollar, with GBP/USD at 1.2484.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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