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IBT: USD Falls Commodities Rally
 
The U.S. dollar index, a gauge of its performance against a trade-weighted basket of currencies, fell 0.3 percent =USD to 76.99 after two straight days of gains.


Significant support for the index lies at 76.00, a move below which would likely accelerate selling of the U.S. currency.

Investors were essentially putting back on bets against the dollar after the G20 meeting reduced some risks of a goods trade backlash from conflicting currency policies.

Short-term investors on the International Monetary Market had a collective bet against the dollar worth $25.8 billion for the week ended Oct. 19, down from about $30 billion two weeks prior.

Metals were early winners after the G20 meeting. Gold rose 0.7 percent to $1,336.45 an ounce XAU=, creeping closer to its all-time high at $1,387.10 an ounce.


Copper traded on the London Metal Exchange jumped 1.5 percent to $8,457.75 a tonne CMCU3, closing in on a two-year high hit of $8,492.00 last Tuesday. A rise above the two-year high would clear the way for a try at triangle pattern resistance at $8,640.

Crude for December delivery climbed 1 percent to $82.47 a barrel CLc1, extending a 12 percent rise since September, when expectations spread for the Fed to inject copious amounts of cheap money into the financial system.
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