U.S. Dollar managed to gain ground against its major counterparts after news showing that inflation remains subdued and below the Fed target rate of 2.0% adding to the U.S. reports showing strength in manufacturing and improvements in consumer spending.

The dollar lost ground on Wednesday, falling from an eight-month high, after Federal Reserve Chairman Ben Bernanke told a congressional committee the U.S. economic recovery is not yet sustainable, and interest rates are likely to remain low for an extended period.

Major currencies continue to fall against the U.S dollar, having investors turning to buy the low yielding dollar and yen, selling the euro and the pound. Fears still domain the currencies market resulting from the tough debts situation in the euro zone.

The market has experienced dramatical changes after the U.S. labor report showing a surprising drop in the job losses which gave great hope of a recovery in U.S economy as well as great hopes that this report could prompt the Federal Reserve to hike rates earlier than some had forecast. The dollar gained the most since June against all other currencies on Friday.

To surprise the investors on the Thanksgiving Day, the dollar reaches a 14-year low against the yen and hits an 18 months low on the Swiss Franc, extending its broad slide on resulted from the extremely low U.S. interest rates. The dollar index also hit a 15-month low.

The dollar gained versus the euro Thursday, derived by a weaker tone in equity markets that tends to signal risk aversion but trapped in a tight trading range. The currency pair remains trapped in a stalemate between support at $1.4800 and resistance at $1.5050.

Crude oil rose above $76 a barrel to a one-year high in New York after an Energy Department report showed an unexpected decline in U.S. gasoline stockpiles as refineries idled units for maintenance.
Crude oil for November delivery climbed 42 cents, or 0.6 percent, to $75.60 a barrel at 11:21 a.m. on the New York Mercantile Exchange.

Dollar Failed to continue the strengthening journey it has stared in the morning, and slumped to a new 14-month low versus major counterparts on Tuesday as investors favored gold, viewed as the most stable currency. Investors are getting more hesitant to hold the dollar with its losses which was only softened by a drop in U.S. stocks.