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Oil Jumps 2.4 Pct On Weak Dollar as OPEC Gathers

Reuters
Oil rose 2.4 percent on Tuesday as the dollar weakened after the U.S. Federal Reserve pledged to keep interest rates near zero for an extended period, and as OPEC ministers planned to keep oil output cuts in place at a meeting Wednesday. The dollar weakened 0.7 percent against a basket of currencies .DXY after the Fed signaled it would hold benchmark interest rates near zero and renewed a pledge to keep them there for an "extended period." The Fed also said the U.S. labor market was "stabilizing" following a recession. The dollar also fell after European finance ministers agreed to technical terms on Monday to provide debt-stricken Greece with aid. A flagging dollar makes oil cheaper for holders of other currencies.
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Posted by Editor at March 17, 2010 01:31 AM