Oil hits new record as dollar weakness, inflation fears fuel buying |
| Forbes - Mar 13, 2008 |
Oil hit a new all-time high above 110 usd a barrel in midday trade, buoyed by further weakness in the dollar and fears over rising inflation, against which crude is bought as a hedge.
This morning, the US currency traded near an all-time low against the euro, and earlier hit a significant 12-year low against the yen.
A softer greenback also makes dollar-denominated commodities such as oil cheaper for holders of other currencies.
'The dollar story and fears of inflation are dictating direction at the moment, with investors seeking to hedge themselves against inflation by buying into commodities and with large players looking for better returns elsewhere, away from sluggish equities and money markets,' said Sucden analyst Andrey Kryuchenkov.
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- Posted: 2008-03-13 10:09:50
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