Dollar rises in Asian trading

The dollar rose during Asian forex trading today (Wednesday 17th), gaining ground after news of falling oil prices, Russia's financial crisis and the possibility of the adoption of a more cautious monetary policy by the Federal Reserve.

Data from Japan showing a smaller-than-expected 4.9 per cent rise in exports during November helped the dollar regain some of its lost ground, Reuters reports.

The US Federal Reserve concludes its final policy review of 2014 later today and could signal an intention to keep interest rates close to zero before raising them next year.

"We expect the Fed to drop its 'considerable time' guidance in favour of a data-dependent approach. We also expect committee members to raise their growth forecasts and trim forecasts for the unemployment rate and inflation," strategists at Barclays said in a note.

On Tuesday, the rouble last traded at 67.95 against the dollar after dropping as low as 78, despite emergency action taken by Russia's central bank to raise interest rates.

This was the steepest intraday fall since Russia's 1998 currency crisis and debt default sapped investors' appetite for risk.

It came against a backdrop of looming financial crisis, falling oil prices and western sanctions over Russian intervention in Ukraine.

Oil hovered around the $60 mark, with Brent crude LCOc1 down 60 cents to $59.41. A supply glut, combined with falling demand, have pushed prices to levels not seen for several years.

Meanwhile, the yen strengthened against the dollar as investors sought safe-haven assets, rising to 115.56 yen against the greenback.

The yield on benchmark ten-year dollar notes declined to 2.060 per cent from its US close of 2.071 percent on Tuesday, when it dropped to a two-month low of 2.009 percent, undermining investors' appetite for the currency.