Markets & Finance News

* Oil prices settle after 3-year peaks on report Saudis want higher prices

* OPEC, non-OPEC panel finds oil glut virtually eliminated-sources

* Oil prices settle after 3-year peaks on report Saudis want higher prices

The dollar gained against a basket of currencies on Thursday on higher U.S. bond yields and expectations of more rate increases from the Federal Reserve, while sterling fell to a near two-week low on perceived dovish remarks from the head of the Bank of England. Recent economic data suggested business activities overseas may have peaked. This has reduced the appeal of the euro, yen, pound and other currencies which have strengthened against the dollar since 2017 based on the view economies outside the United States had been faring better until recent weeks. The relatively optimistic backdrop in the United States should support the Fed to raise short-term rates at least twice more in 2018, traders and analysts said. "People are looking at the next potential rate hike whether we get two or three more this year," said Minh Trang, senior foreign exchange trader at Silicon Valley Bank in Santa Clara, California. An index that tracks the greenback versus the euro, yen, sterling and three other currencies rose 0.28 percent, to 89.877 after touching a one-week peak. The euro was last down 0.21 percent, at $1.2346, while the dollar was 0.10 percent higher at 107.34 yen. The U.S. economy, while not firing on all cylinders, has remained on a steady growth path which has assured the Fed to stick with its current pace of rate increases. This has propelled the two-year Treasury yield to 2.436 percent, its highest level since September 2008. Its yield gap over two-year German Bunds has reached its widest level in over three decades. The hefty 3 percentage point yield premium has supported some overseas demand for the dollar, analysts said. On the other hand, the dollar faces headwinds from the uncertainty stemming from U.S. President Donald Trump's trade and economic policies, as well as political events in the Middle East and elsewhere. "There is a little bit of fatigue with the trade war issue and the global economic cycle is losing momentum, especially in the euro zone whereas the U.S. is holding up," said Christin Tuxen, an FX strategist at Danske Bank in Copenhagen. Investors are growing nervous that the euro zone economy's rebound is nearing the top and the European Central Bank may move more slowly to tighten monetary policy. Bank of England Governor Mark Carney on Thursday acknowledged the recent mixed domestic economic readings, which reinforced the view the BOE would raise rates gradual over next few years. His comments knocked the pound to near two-week low against the dollar. Sterling was last down 0.85 percent at $1.4085. ======================================================== Currency bid prices at 1443 EDT (1843 GMT): Description RIC Last U.S. Close Pct YTD Pct High Bid Low Bid Previous Change Change Session Euro/Dollar $1.2344 $1.2372 -0.23 +2.90 +1.2400 +1.2330 Dollar/Yen 107.3800 107.2300 +0.14 -4.70 +107.5100 +107.1900 Euro/Yen 132.55 132.68 -0.10 -1.95 +133.0700 +132.3600 Dollar/Swiss 0.9716 0.9685 +0.32 -0.28 +0.9724 +0.9668 Sterling/Dollar 1.4082 1.4201 -0.84 +4.22 +1.4245 +1.4079 Dollar/Canadian 1.2671 1.2626 +0.36 +0.75 +1.2675 +1.2585 Australian/Doll 0.7719 0.7782 -0.81 -1.05 +0.7812 +0.7720 ar Euro/Swiss 1.1993 1.1985 +0.07 +2.60 +1.2001 +1.1963 Euro/Sterling 0.8763 0.8712 +0.59 -1.35 +0.8770 +0.8689 NZ Dollar/Dolar 0.7262 0.7317 -0.75 +2.48 +0.7342 +0.7262 Dollar/Norway 7.7970 7.7601 +0.48 -5.00 +7.8039 +7.7340 Euro/Norway 9.6281 9.6008 +0.28 -2.24 +9.6385 +9.5718 Dollar/Sweden 8.4093 8.4027 -0.17 +2.53 +8.4181 +8.3712 Euro/Sweden 10.3810 10.3989 -0.17 +5.51 +10.4051 +10.3593 (Additional reporting by Tommy Wilkes in LONDON, Shinichi Saoshiro in TOKYO; Editing by Susan Thomas and Tom Brown)

* Oil at over 3-year peaks on report Saudis want higher prices

World Bank President Jim Yong Kim said on Thursday that a plan to strengthen the multilateral lender's capital base does not specify reductions in loans to China or any other countries, but added that lending to lower-middle-income countries would expand over time.

The dollar was little changed against a basket of currencies on Thursday as higher U.S. bond yields and expectations of more rate increases from the Federal Reserve offset worries about a trade war and a ballooning U.S. budget deficit. Recent economic data suggested business activities overseas may have peaked. This has reduced the appeal of the euro, yen and other currencies which have strengthened against the dollar since 2017 based on the view economies outside the United States had been faring better until recent weeks. "It's a dull day altogether," said Minh Trang, senior foreign exchange trader at Silicon Valley Bank in Santa Clara, California. "We are seeing rangebound trading with most currencies against dollar." An index that tracks the greenback versus the euro, yen, sterling and three other currencies was down 0.02 percent, at 89.608. The dollar index has moved in a narrow 0.6 percentage point range since last Friday. The euro was last up 0.02 percent, at $1.2374, while the dollar was 0.10 percent higher at 107.34 yen. The U.S. economy, while not firing on all cylinders, has remained on a steady growth path which has assured the Federal Reserve to stick with its current pace of rate increases. This has propelled the two-year Treasury yield to 2.436 percent, its highest level since September 2008. Its yield gap over two-year German Bunds has reached its widest level in over three decades. The hefty 3 percentage point yield premium has supported some overseas demand for the dollar, analysts said. On the other hand, the dollar faces headwinds from the uncertainty stemming from U.S. President Donald Trump's trade and economic policies, as well as political events in the Middle East and elsewhere. "There is a little bit of fatigue with the trade war issue and the global economic cycle is losing momentum, especially in the euro zone whereas the U.S. is holding up," said Christin Tuxen, an FX strategist at Danske Bank in Copenhagen. Investors are growing nervous that the euro zone economy's rebound is nearing the top and the European Central Bank may move more slowly to tighten monetary policy. Tuxen remains bullish on the euro, seeing the single currency rise towards $1.30 in 12 months but said in the short-term the euro could fall as the ECB, which meets next week, takes more time in raising rates. ======================================================== Currency bid prices at 10:25AM (1425 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.2375 $1.2372 +0.02% +3.16% +1.2400 +1.2356 Dollar/Yen JPY= 107.3400 107.2300 +0.10% -4.73% +107.5100 +107.1900 Euro/Yen EURJPY= 132.86 132.68 +0.14% -1.72% +133.0700 +132.6900 Dollar/Swiss CHF= 0.9672 0.9685 -0.13% -0.73% +0.9711 +0.9668 Sterling/Dollar GBP= 1.4229 1.4201 +0.20% +5.31% +1.4245 +1.4162 Dollar/Canadian CAD= 1.2605 1.2626 -0.17% +0.22% +1.2645 +1.2585 Australian/Doll AUD= 0.7781 0.7782 -0.01% -0.26% +0.7812 +0.7764 ar Euro/Swiss EURCHF= 1.1973 1.1985 -0.10% +2.43% +1.1998 +1.1963 Euro/Sterling EURGBP= 0.8697 0.8712 -0.17% -2.09% +0.8736 +0.8689 NZ Dollar/Dolar NZD= 0.7301 0.7317 -0.22% +3.03% +0.7342 +0.7294 Dollar/Norway NOK= 7.7481 7.7601 -0.15% -5.59% +7.7725 +7.7340 Euro/Norway EURNOK= 9.5907 9.6008 -0.11% -2.62% +9.6175 +9.5718 Dollar/Sweden SEK= 8.3824 8.4027 -0.25% +2.20% +8.4080 +8.3712 Euro/Sweden EURSEK= 10.3734 10.3989 -0.25% +5.43% +10.4051 +10.3593 (Additional reporting by Tommy Wilkes in LONDON, Shinichi Saoshiro in TOKYO; Editing by Hugh Lawson, Jon Boyle and Susan Thomas)

Global debt has never been higher, the IMF said this week, urging countries to take advantage of current strong GDP growth rates and reduce it before economic and financial stability come under serious threat.

The biggest danger from the trade dispute between the United States and China is the threat to global confidence and investment, International Monetary Fund Managing Director Christine Lagarde said on Thursday.

* Oil highest in over 3 yrs on report Saudis want higher prices