By Gertrude Chavez-Dreyfuss
NEW YORK (Reuters) – The dollar stumbled on Monday, surrendering earlier gains following unexpected oil output cuts from OPEC+, as data showed the U.S. economy continued to slow with declines in manufacturing and construction spending.
Data on Monday added to the narrative that the Federal Reserve is near the end of its rate-hike cycle.
An announcement on Sunday of output target cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, propelled oil prices higher. Brent crude last traded at $84.9 per barrel, up 5.7%. [O/R]
The dollar initially rose after the announcement.
OPEC+ was expected to stick to cuts of two million barrels per day (bpd) which were already in place until the end of 2023, but instead announced further output cuts of around 1.16 million bpd.
The OPEC impact, however, was short-lived, as investors focused on monetary…