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Dollar losses mount as investors spooked by Mnuchin comments

Oil prices climbed as the weaker dollar makes the commodity cheaper for holders of other currencies. WTI was up more than one percent, while Brent was holding around $71.

Crude buying was also boosted by a drop in US inventories and remarks from Russia and Saudi Arabia indicating a commitment to supporting prices.

Gold was up at $1,366, within touching distance of its highest since July 2016. The yellow metal is also seen as a hedge against rising inflation expected to be caused by the weaker dollar.

On equity markets Hong Kong fell almost one percent, with profit-taking adding to the selling pressure after the Hang Seng Index chalked up a succession of records since last week.

Shanghai ended down 0.3 percent, while Sydney fell 0.1 percent and Singapore eased 0.9 percent. Jakarta, Kuala Lumpur and Bangkok also dropped.

However, the strong growth data helped Seoul rise one percent while Manila gained 0.9 percent. Taipei, Wellington and Mumbai were also up.

In early European trade London rose 0.1 percent, Paris was flat and Frankfurt shed 0.3 percent.

– Key figures around 0820 GMT –
Euro/dollar: UP at $1.2430 from $1.2402 at 2150 GMT

Pound/dollar: UP at $1.4280 from $1.4217

Dollar/yen: DOWN at 109.00 yen from 109.21 yen

Tokyo – Nikkei 225: DOWN 1.1 percent at 23,669.49 (close)

Hong Kong – Hang Seng: DOWN 0.9 percent at 32,654.45 (close)

Shanghai – Composite: DOWN 0.3 percent at 3,548.31 (close)

London – FTSE 100: UP 0.1 percent at 7,649.75

Oil – West Texas Intermediate: UP 68 cents at $66.29 per barrel

Oil – Brent North Sea: UP 43 cents at $70.96 per barrel

New York – DOW: UP 0.2 percent at 26,252.12 (close)

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