Oil rebound, strong Chinese exports help support the buck
by Joseph Adinolfi and Hiroyuki Kachi
The U.S. dollar was on track to log its largest daily gain against Europe’s shared currency in nearly two months Wednesday as a stronger-than-expected reading on Chinese exports sparked a global stock rally that brightened broader market sentiment.
The euro bought $1.1319, down 0.6% from $1.1388 late Tuesday in New York. If it finishes the day at these levels, that would be the largest daily decline for the shared currency — and largest daily gain for the dollar — since Feb. 26, when it fell nearly 1%.
Market strategists cited solid gains in Chinese exports and the recent bounce in oil prices to the highest settlement levels of the year as the main drivers of a recovery in risk sentiment that’s boosting equity prices and reversing safe-haven flows that weakened the dollar.