Oil Rises As Dollar Drops After Interest Rate Cut

The Associated Press:
Oil prices rose in Asian trading Thursday as the dollar weakened after the U.S. central bank cut its key interest rate. The U.S. Federal Reserve said Wednesday it would cut the federal funds rate by a quarter percentage point to 2 percent. Early in Asia, the dollar lost ground against both the euro and yen, although it began to stabilize and strengthen later in the day. "The U.S. (Federal Open Market Committee) meeting and the softer U.S. dollar helped the oil price recover some ground," said David Moore, commodity strategist with the Commonwealth Bank of Australia in Sydney.

Posted by Editor at May 1, 2008 12:56 PM