Oil Weighs Again on Dollar, Dow
Thu, Jun 26 2008, 20:17 GMT
by Andrei Pehar
The Dollar fell sharply today against most other currencies,
mostly in response to oil closing at $139.75 per barrel. It reached
1.5755 against the Euro, 1.9891 against the British Pound, 106.60 against the
Japanese Yen, and1.0228 against the Swiss Franc. The Dow fell 358 points
as well, ending the day at 11,453.42
Yesterday the Federal Reserve announced they were leaving the key interest rate
unchanged at 2.00%, citing continued however reduced concern over recession
(despite the worst consumer confidence number in 16 years), and continued
concern over inflation, especially in the food and energy sectors.
Bernanke also mentioned that while inflation remains a concern, he expects the
worst of it to be over by the end of 2008.
Meanwhile Trichet, his counterpart at the European Central Bank, just one day
prior announced that the threat of inflation seems to be expanding, and that he
does not expect any meaningful turn-around until mid-2009.
