Oil Prices Undermine the Dollar and the Yen

The dollar fell Monday amid concerns that oil prices could threaten economic growth, while the euro gained comfort from an improvement in German business confidence.

“The market is of the view that the rise in oil prices is going to be around for a while, and that generally is negative for the dollar and the yen,” said Adam Cole, a strategist at Royal Bank of Canada. “Europe also imports oil but is less dependent than the United States.”

Oil prices moved above $60 a barrel, sparking concern among central bankers in Basel for the annual meeting of the Bank for International Settlements that oil could sap the strength of the global economy. Light sweet crude for August delivery traded at $60.85 a barrel, up $1.01, in New York.
International Herald Tribune