Rising oil revives currencies linked to commodities
LONDON (Reuters) - The Australian and Canadian dollars advanced on Tuesday thanks to a five-month high in oil prices, pushing up most commodity-linked currencies.
Oil prices rose on the back of tight global supplies due to fighting in Libya, OPEC-led output cuts and US sanctions against Iran and Venezuela, although energy prices fell slightly on Tuesday.
Alongside the Australian dollar and its Canadian counterpart, the Norwegian krona also made gains.
The Australian dollar was up 0.2 percent at $ 0.7144 and earlier touched a three-week high.
The Canadian currency rose to 1.3293 US dollars against its US counterpart, the strongest level since March 21.
The US dollar fell for a second day in a row, while the list of fees on European goods proposed by Washington had no immediate impact on the euro, as the single currency rose slightly.
The euro was up 0.1 percent at $ 1.1266 as traders awaited a meeting of the European Central Bank on Wednesday.
The dollar was down 0.1 percent at 96.878 after losing 0.35 percent the previous day, its biggest daily decline since March 20.
The British pound is set to reach 1.31 dollars as Prime Minister Teresa May is to ask the leaders of Germany and France to postpone Britain's exit from the European Union in a stalemate in London.
The Norwegian krona rose 0.1 percent to 8,541 to the dollar after a 0.7 percent gain on Monday on higher oil prices. It also rose slightly against the euro.
The Japanese currency gained 0.1 percent to 111.355 yen.