The dollar edged higher in early European trade Wednesday, stabilizing after weakness overnight following commentary from Federal Reserve Chair Jerome Powell that again indicated the central bank will take time to tighten monetary policy.
At 2:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% higher at 91.865, after dropping as low as 91.672 late Tuesday.
USD/JPY was up 0.2% at 110.81, EUR/USD dropped 0.2% to 1.1919, after rebounding from as low as $1.18470 at the end of last week, GBP/USD fell 0.1% to 1.3931, while the risk-sensitive AUD/USD was down 0.1% at 0.7545.
Powell stuck largely to his previous script when addressing lawmakers on Tuesday, acknowledging that the price increases seen in the economy recently had been bigger than expected but repeating that they will probably wane. Powell was again upbeat on the outlook for the labor market however.
Oil was up Wednesday morning in Asia as a strong economic rebound of key consumers boosted fuel demand and drained bloated inventories. Investors now await a Organization of the Petroleum Exporting Countries and allies (OPEC+) meeting for clues on production policy.
Brent oil futures rose 0.59% to $75.25 by 12:40 AM ET (4:40 AM GMT) and WTI futures jumped 0.47% to $73.19.
U.S. crude oil supply data from the American Petroleum Institute showed a draw of 7.199 million barrels for the week ending Jun. 18. Forecasts prepared by Investing.com predicted a 3.625 million-barrel draw, while an 8.537 million-barrel draw was recorded during the previous week.
Investors now await crude oil supply from the U.S Energy Information Administration, due later in the day.
Fuel demand has also been boosted by key markets including the U.S. and China which continue their economic recovery from COVID-19.
Electric-vehicle maker Tesla (NASDAQ:TSLA) Inc said on Wednesday it has opened its first charging station in China with its own solar and energy storage facilities.
The charging station in Lhasa city will generate power from sunlight and store it in the energy storage facilities for electric vehicles to charge, the company said in a Weibo (NASDAQ:WB) post.
Tesla moved into the solar business in 2016 with its $2.6 billion purchase of California-based SolarCity, and has said it is keen to develop its energy business.
The company’s solar services include Solar Roof, a power generating system meant to look like normal roof tiles, and Powerwall, which can store power generated by solar panels.
Last year, Tesla, which is making electric vehicles in Shanghai, put out job ads for solar and energy storage project managers in China.
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