Dollar up as commodities rise

THE dollar was marginally higher this morning after commodities prices rose fuelled by safe-haven buying.

THE dollar was marginally higher this morning after commodities prices rose fuelled by safe-haven buying.

At 7am (AEST) today, the dollar was trading at 105.59 US cents, slightly higher than 105.47 cents at close yesterday.

Since 5pm (AEST) yesterday, the local unit traded between 105.10 US cents and 105.90 cents.

HiFX senior trader Stuart Ive said the dollar stabilised against the US dollar towards the end of the offshore session.

"It was a fairly choppy night for all markets overnight with the saving grace coming from the commodity markets that have all edged higher," Mr Ive said from Auckland. "Gold had a good night last night with with continuing fears that Greece would default on their debt.

"So on those fears gold is higher, oil had a reasonable night as well, and the copper market also rebounded.

"The Aussie dollar obviously benefited from the higher commodity prices," Mr Ive said.

The Australian Bureau of Statistics releases data on March quarter construction work done today and Capital Expenditure figures tomorrow.

Mr Ive said while there would be a focus on the economic data, the main driver for the dollar today would be how market sees the European sovereign debt crisis.

He expected the dollar to trade in a range between 105.10 US cents and 105.90 cents today.