Business | Markets
Greenback posts gains as crude prices decline
The US dollar rose versus the euro on Tuesday as oil prices fell, but broader gains were limited on mild profit-taking after a rally ignited by the government's bailout of mortgage firms Fannie Mae and Freddie Mac.
- Agencies
- Published: 22:14 September 9, 2008
New York: The US dollar rose versus the euro on Tuesday as oil prices fell, but broader gains were limited on mild profit-taking after a rally ignited by the government's bailout of mortgage firms Fannie Mae and Freddie Mac.
Analysts said increasing signs of a global economic slowdown outside the US were supporting the dollar, as were some views that the US economy may be the first to recover.
"Oil is lower. Ultimately it looks to be that the euro is in the process of a parabolic decline and cannot get above the $1.4150 area, so sellers just came back into the market," said Brian Dolan, head of Currency Research at Forex.com in Bedminster, New Jersey.
In the New York morning session, the euro traded down 0.3 per cent at $1.4086, not far from an 11-month low of $1.4049 touched in overnight trade.
Oil fell to a new five-month low as expectations of the Organisation of Petro-leum Exporting Countries (Opec) would leave formal output targets steady outweighed concerns over the threat of Hurricane Ike to US Gulf of Mexico energy infrastructure.
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