Dollar rises as oil slips; near year high vs euro
Dollar rebounded against other currencies as oil prices slipped, reaching its highest point in nearly a year against the euro.
By Agencies |
NEW YORK: The dollar rebounded against other currencies on Wednesday as oil prices slipped, reaching its highest point in nearly a year against the euro.
In late New York trading, the 15-nation euro fell to $1.4033 from $1.4168 the night before in New York. Earlier in the session, the euro touched $1.4009, its lowest level since September 2007.
The British pound dropped to $1.7560 from $1.7637, and the dollar rose to 107.76 Japanese yen from 107.07 the night before.
``One of the things we learned today is that the dollar's safe haven status has returned after taking something of a time out through the last year,'' said Michael Woolfolk, senior currency strategist at the Bank of New York Mellon Corp.
On Wednesday, crude oil prices fell 68 cents to settle at $102.58 a barrel on the New York Mercantile Exchange, despite OPEC's announcement that it would cut production by 520,000 barrels a day.
The dollar and oil prices have tended to trade inversely this year. Oil has fallen about 30 percent since its peak at $147.27 on July 11; the dollar has risen 12.5 percent since its bottom against the euro of $1.6038 on July 15.
When markets plunge and investors want to curtail risky bets, they can invest in ``safe'' currencies deemed stable despite market and political turmoil.
On Tuesday, markets plunged and the dollar fell over worries about the U.S. financial sector and Lehman Brothers Holdings Inc.'s financial soundness.
In other New York trading, the dollar rose to 1.1344 Swiss francs from 1.1246, and climbed to 1.0696 Canadian dollars from 1.0686.
In late New York trading, the 15-nation euro fell to $1.4033 from $1.4168 the night before in New York. Earlier in the session, the euro touched $1.4009, its lowest level since September 2007.
The British pound dropped to $1.7560 from $1.7637, and the dollar rose to 107.76 Japanese yen from 107.07 the night before.
``One of the things we learned today is that the dollar's safe haven status has returned after taking something of a time out through the last year,'' said Michael Woolfolk, senior currency strategist at the Bank of New York Mellon Corp.
On Wednesday, crude oil prices fell 68 cents to settle at $102.58 a barrel on the New York Mercantile Exchange, despite OPEC's announcement that it would cut production by 520,000 barrels a day.
The dollar and oil prices have tended to trade inversely this year. Oil has fallen about 30 percent since its peak at $147.27 on July 11; the dollar has risen 12.5 percent since its bottom against the euro of $1.6038 on July 15.
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When markets plunge and investors want to curtail risky bets, they can invest in ``safe'' currencies deemed stable despite market and political turmoil.
On Tuesday, markets plunged and the dollar fell over worries about the U.S. financial sector and Lehman Brothers Holdings Inc.'s financial soundness.
In other New York trading, the dollar rose to 1.1344 Swiss francs from 1.1246, and climbed to 1.0696 Canadian dollars from 1.0686.
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