Dollar under pressure as oil prices slump, Australia rate decision awaited
USO•USO•USO•USO•The dollar wavered as Brent crude futures plunged more than 7% on hopes for a diplomatic breakthrough between the US and Iran. The Australian dollar was little changed ahead of an expected 25-basis-point rate increase by the Reserve Bank of Australia to 4.85%.
The dollar index was last slightly weaker at 101.76 after falling to a one-month low on Monday. Brent crude futures plunged more than 7% in their sharpest single-day drop in months after Tehran said contacts with the US aimed at ending their eight-month war were continuing.
Lower energy prices eased inflation concerns and dragged longer-dated US Treasury yields lower. The Australian dollar was little changed at $0.7002 ahead of the Reserve Bank of Australia's decision; the central bank was expected to raise its official cash rate by 25 basis points to 4.85%, its highest level since December 2008.
