Dollar strengthens, crude oil dips to lowest level in two weeks

18-Oct-10

Crude for November delivery fell by almost one and a half dollar to US$81.2 on the Nymex. Brent crude for December dipped to US$82.4 on the ICE Futures Europe exchange in London. Crude oil prices have tanked to their lowest level in two weeks as the dollar strengthens. The Dollar Index, which tracks the US currency against 6 of its major peers, rebounded from a 10 month low after technical indicators suggested further declines would be difficult to sustain. Declines were seen in the dollar, a day ago, after US Federal Reserve Chairman said additional monetary stimulus may be warranted. Rising retail sales in USA in the month of September have eased consumer concerns.