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Dollar higher as oil prices continue falling

(Xinhua)
Updated: 2008-08-07 10:42

NEW YORK -- The dollar rose against major currencies on Wednesday as oil prices fell on demand concerns.

Crude oil prices continued falling on Wednesday after a government report showed US crude and fuel inventory rose by more than expected last week. It added concerns that a US and global economic slowdown and high energy costs would dampen demand for petroleum products.

Light, sweet crude for September delivery dropped to a session low of $117.11 dollars a barrel before recovering on the New York Mercantile Exchange. It finished the session at $118.58 a barrel, 59 cents lower than its finish on Tuesday.

The dollar was also bolstered by weak economic data from Europe. German factory orders unexpectedly fell seasonally adjusted 2.9 percent in June, in contrast to a 0.4 percent increase expected by analysts.

The Nationwide Building Society, the biggest building society in Britain, reported that its consumer confidence index fell by a monthly 11 points, or 18 percent, to 51 in July. It was the lowest level since the society began its survey in 2004.

The euro bought $1.5420 in late New York trading compared with $1.5473 it bought late Tuesday. The British pound fell to $1.9475 from $1.9562.

The dollar rose to 1.0602 Swiss francs from 1.0539 Swiss francs, and rose to 109.54 Japanese yen from 108.17 Japanese yen. It rose to 1.0477 Canadian dollars from 1.0428 Canadian dollars.