Brent gains with Fed's rate pause causing weaker dollar

By Ovunc Kutlu

ANKARA (AA) - The price of Brent crude was up during Thursday's early trading resulting from a pause in the U.S. Federal Reserve's (Fed) interest rate until 2021 that caused a decline in the American dollar and intensified oil demand.

International benchmark Brent crude was trading at $64.02 per barrel at 0700 GMT on Thursday for a 0.14% gain after it closed the previous session at $63.93 a barrel.

American benchmark West Texas Intermediate (WTI), however, was at $58.89 a barrel at the same time for a 0.08% decrease after ending the previous day at $58.94 per barrel.

In its December meeting held on Wednesday, the U.S.' Federal Open Market Committee kept its benchmark interest rate steady, and said it does not anticipate seeing any rate change until 2021.

The Fed Chair Jerome Powell said in a press conference afterwards that the central bank would act appropriately to sustain the economy, putting the Fed rates on pause to watch which way the American economy goes.

After the Fed's decision, the U.S. dollar index, which includes a basket of currencies like the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc, closed Wednesday unchanged at $97.41, but on Thursday it dropped 0.33% to $97.09 at 0700 GMT.