The U.S. dollar index jumped to a near 14-year high on Wednesday, November 16, while oil prices fell in a volatile session as traders were caught between a build in U.S. stockpiles and the chance of an agreement in an output cut, Reuters reports.
The dollar index, a measure of the greenback’s value against a basket of currencies, hit 100.57 .DXY, its highest since April 2003. It was last up 0.14 percent at 100.37.
The euro EUR= fell 0.4 percent to $1.0683, while the yen JPY= was little changed at 109.13 per dollar, having earlier fallen to 109.75. The greenback rose to an eight-year high against the Chinese yuan of 6.8798 yuan CNY=CFXS.
The dollar has surged in the past week, tracking Treasury yields higher on the expectation that increased U.S government spending could trigger higher inflation and force the Federal Reserve to tighten monetary policy more quickly than expected.
U.S. interest rate futures are pricing in an 81 percent chance of a rate hike at the next Fed meeting, scheduled for December.
The Dow Jones industrial average .DJI fell 48.62 points, or 0.26 percent, to 18,874.44 and the S&P 500 .SPX lost 3.28 points, or 0.15 percent, to 2,177.11, while gains in tech shares helped the Nasdaq Composite .IXIC add 18.55 points, or 0.35 percent, to 5,294.17.
The pan-European FTSEurofirst 300 index .FTEU3 fell 0.21 percent, while MSCI’s gauge of stocks across the globe .MIWD00000PUS edged down 0.06 percent
