(RTTNews) - In European deals on Wednesday, the U.S. dollar showed mixed trading against its major counterparts as investors look for a raft of earnings today. The dollar plunged to a 5-week low against the pound, while it pared Asian session gains against the euro and the franc. On the other hand, the dollar recouped its losses against the yen.
Morgan Stanley, eBay, Eli Lilly, Amgen, Boeing Co., KeyCorp, Northrop Grumman and Wells Fargo & Co are the companies due to report results today.
Oil fell below $79 a barrel, extending the previous session's decline from a one-year peak after a bigger-than-expected rise in U.S. crude oil inventories.
The American Petroleum Institute said crude stocks rose 3.8 million barrels, more than double the forecast. Traders will be looking to Energy Information Administration figures today for confirmation of the API report.
U.S. crude for December fell 57 cents to $78.55 a barrel by 4.15 am ET. Brent crude lost 44 cents to $76.80. On Tuesday, the November U.S. crude contract hit $80.05, a 12-month high for a nearby contract.
The dollar strengthened against the yen after touching a low of 90.50 at 3:15 am ET Wednesday. Currently, the dollar-yen pair is worth 91.01, up from yesterday's close of 90.70. If the pair advances further, it may target the 91.3 level.
Bank of Japan Deputy Governor Kiyohiko Nishimura hinted that the central bank may end its corporate funding programmes on December 31, when they expire.
Recent improvements in the financial market conditions have strengthened this speculation. Speaking to business leaders in Kobe, western Japan, Nishimura said companies with higher credit ratings now find it easier to sell bonds and commercial paper. He added that the central bank will make comprehensive and appropriate decision on corporate funding measures at its next policy meeting on October 30 or later.
At 3:20 am ET Wednesday, the dollar fell to 1.0095 against the Swiss franc and 1.4967 against the euro, compared to early Asian session highs of 1.0156 and 1.4980, respectively. The next downside target level for the dollar is seen at 1.4996 against the euro and 1.0086 against the franc. The euro-dollar and the dollar-franc pairs were worth 1.4940 and 1.0122, respectively at yesterday's close.
The Swiss National Bank said in a report that the M3 money supply increased 7.8% year-on-year in September, faster than the 7.4% growth in the previous month. A year ago, the money supply was up 1.4%.
