the dollar softened monday as investors focused on upcoming u.s. data and the potential for an oil-production cut ahead of wednesday<u+2019>s opec meeting. the wsj dollar index, which measures the u.s. currency against 16 others, fell 0.4% to 91.50. the dollar was down against currencies of oil-producing countries, falling 0.7% against the canadian dollar and 0.4% against the norwegian krone. oil prices oscillated monday, closing up 1.8%, as investors continue to assess the prospects that opec members agree to rein in production ahead of wednesday<u+2019>s main meeting. a production cut would likely support oil prices and boost the currencies of oil exporters such as canada, russia and norway. <u+201c>all eyes will be on the opec meeting this week to see what sized production cut we might have in store,<u+201d> said brad bechtel, a currency strategist at jefferies group, in a research note. investors are also watching a string of u.s. data this week on gross-domestic product, manufacturing and hiring. upbeat reports would further solidify the federal reserve<u+2019>s case for raising interest rates next month. markets are already pricing in a 96% chance that the fed raises rates at its december meeting, according to cme group data. higher rates typically support the dollar by making the currency more attractive to yield-seeking investors. the euro was up 0.3% to $1.0608. european central bank president mario draghi on monday warned about the risks low-interest rates pose to the eurozone, such as encouraging a buildup of debt and excessive risk-taking. the yen rallied about 1% versus the dollar, recovering from a 7% selloff in the wake of the u.s. election. write to chelsey dulaney at chelsey.dulaney@wsj.com
dollar slips with u.s. data, oil in focus - wsj
chelsey dulaney