Page added on May 20, 2010
Oil prices trading up, eyes on currencies euro & dollar
Oil prices rose in Asian trading on Thursday but sentiment remained weak as global investors look at the situation in Europe and watch the currency markets for changes in the euro and the US dollar.
The dollar index which tracks the US dollar unit against a trade weighted basket of six major currencies, rose to 86.461 from 86.094 late Wednesday.
Yesterday the euro rose more than 1% against the dollar and yen, recouping a steep drop that had extended into the early hours. Analysts attributed the rebound to traders reversing so called short bets that the euro would decline even further.
The eurozone fiscal crisis will continue to dominate the markets for now, and until a clearer picture of how austerity measures and government bans on short selling play out, the euro is likely to remain heavy across the board, weighing on oil prices.