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Dollar rises as oil, stock markets show exuberance

NEW YORK (AFP) – The dollar strengthened against the euro, the yen and the British pound on Thursday as the greenback regained momentum on currency markets.

Markets reacted with excitement on Thursday as a Saudi Arabian official s remarks sent oil prices upwards and Wall Street stocks jumped to fresh records.

Saudi oil minister Khalid al-Falih reportedly suggested OPEC producers could agree to cut output next month.

Shortly after 1800 GMT, the euro stood at $1.1114, down from $1.1183 at 2100 GMT the day before.

The dollar rose to 102.02 yen, up from 101.26, while the pound fell to $1.2959, versus $1.3014 on Wednesday.

US economic indicators, which help drive appetite for US currency, have seesawed in recent days, as investors gauge the likelihood of a US interest rate hike.

July job creation far surpassed expectations at 255,000 but second quarter productivity was down 0.5 percent.

David Song of DailyFX said most US monetary policy makers were likely to hold off on a rate hike.

“(Federal Reserve) Chair Janet Yellen appears to be in no rush to implement higher borrowing costs, and the data print may largely fail to move the needle for interest rate expectations,” said Song.