Dollar index decreases by 1.6% in July – OPEC

The Organisation of the Petroleum Exporting Nations (OPEC) has mentioned the U.S. greenback index decreased by 1.6 per cent month-on-month (m-o-m) in July, erasing good points from the earlier interval.

The greenback index rose for the second consecutive month in June, growing marginally by 0.3 per cent m-o-m.

OPEC mentioned this in its Month-to-month Oil Market Report for August obtained by the Information Company of Nigeria (NAN) on Friday.

The report, whereas stating the impression of the greenback and inflation on oil costs, mentioned the greenback receded, though the Federal Reserve hiked rates of interest by 25 foundation factors (bp) in July.

This, it mentioned, underscored a shift in danger sentiment as buyers’ international macroeconomic outlook improved, and monetary markets wagered that the U.S. financial system would keep away from recession.

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Based on the OPEC report, 12 months-on-12 months (Y-o-Y), the index was down by 5.2 per cent.

The OPEC report mentioned the greenback skilled blended motion in opposition to main developed market currencies for a second consecutive month in July.

It mentioned it recovered in opposition to the euro by 2.2 per cent m-o-m, however receded in opposition to the yen and the pound by 0.2 per cent and a pair of.2 per cent, respectively, over the identical interval.

It mentioned Y-o-Y, the greenback was up by 8.9 per cent and three.0 per cent in opposition to the euro and yen, respectively; nevertheless, it was down by 7.1 per cent in opposition to the pound over the identical interval.

“When it comes to rising market currencies, the greenback declined for a second consecutive month in July in opposition to the rupee and the Brazilian actual by 0.1 per cent and 1.1 per cent respectively, m-o-m.

“In the meantime, it superior in opposition to the yuan for a second consecutive month by 0.3 per cent m-o-m,” the oil market report mentioned.

It mentioned Y-o-Y, the greenback was up by 3.2 per cent and 6.7 per cent in opposition to the rupee and yuan, respectively; nevertheless, it was down by 10.6 per cent in opposition to the true over the identical interval.

It mentioned the differential between nominal and actual OPEC Reference Basket (ORB) costs widened m-o-m.

It mentioned inflation (nominal worth minus actual worth) went from unfavourable 1.78 {dollars} per barrel in June to unfavourable 3.11 {dollars} per barrel in July, a 76.7 per cent enhance m-o-m.

It additional acknowledged that in nominal phrases, accounting for inflation, the ORB worth went from 75.19 per cent per barrel in June to 81.06 per barrel in July, a 7.8 per cent enhance m-o-m.

It added that Y-o-Y, the ORB was down by 25.3 per cent in nominal phrases.

In actual phrases (excluding inflation), it mentioned the ORB went from 76.95 {dollars} per barrel in June to 84.17 {dollars} per barrel in July, a 9.4 per cent enhance m-o-m.

“Y-o-y, the ORB was down by 24.4 per cent in actual phrases,” it mentioned.