Sunday, April 10, 2011

Oil prices surge to fresh two and a half year highs

Oil prices have surged to a two-and-a-half-year high on concerns about supply and a weaker dollar. Brent crude topped $126, while US crude was at $112.79.Other commodity prices were also boosted by the fall in the US currency, as a weaker dollar makes commodities cheaper for investors holding other currencies.
Gold hit a new record of $1473.40 an ounce, while silver went to $40.22 an ounce, its highest since 1980. With little prospect of an interest rate rise in the US any time soon, the dollar has fallen in recent weeks.
It stands at a 15-month low against a basket of currencies. In morning Friday trade, the pound and the euro rose further, to $1.6427 and $1.4422 respectively.Interest rates in the eurozone rose on Thursday, from 1% to 1.25%, with the UK expected to increase borrowing costs within the next few months.
Higher rates are used to combat inflation, which is being driven by rising commodity prices.

View this site: World News Updations

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