The greenback surged on Friday and touched its highest level in 8-month vs. a basket of currencies as hopes for a U.S. rate rise, before the end of the year, continued to boost demand for the U.S. dollar.
The U.S. dollar surged after New York Fed President William Dudley said on Wednesday that the Federal Reserve would likely hike interest rates later this year if the economy remains on its current track.
Gold failed to settle above the 200-day moving average of $1,267 and swung between gains and losses at the end of last week’s trading session.
The U.S. dollar index hit an 8-month high and settled at 98.60, as the euro fell last Thursday.
Euro sank below $1.09 vs. USD and could decline further to $1,0760, with a chance to re-test the resistance of $1,0960.
The views of the Saudi Kingdom and Russia, the world's top oil producer's, on the need to stabilize the market "are getting closer". Saudi Arabia's Energy Minister Khalid Al-Falih said on Sunday. U.S. crude surged to $50 last week, although traders warned that the underlying high prices could increase the numbers of the U.S. rigs.
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