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Oil and commodities fall on dollar rise

17 December 2009 07:43 (UTC +04:00)

Bakuâ€“ APA-Economics. Oil, gold and copper declined as the dollar advanced to its highest level in three months against the euro on signs the U.S. economic recovery is gaining momentum, Bloomberg reported.
Wheat and soybeans reversed gains as the U.S. currency increased against 15 out of 16 of its most-traded counterparts, advancing 0.9 percent against the euro and 0.4 percent versus the yen. Investors turned bullish on the dollar for the first time since March, a survey of Bloomberg users showed. The U.S. economy is strengthening, the Federal Open Market Committee said.
Commodities, measured by the Standard & Poorâ€™s GSCI index of 24 futures, advanced 44 percent this year by yesterdayâ€™s close as the dollarâ€™s value against six major currencies dropped 5.3 percent. Investors bought raw materials to protect their wealth amid the worst global recession since World War II and as governments spent at least $12 trillion in economic stimulus.
The worldâ€™s primary reserve currency will climb in the next six months, according to 1,934 participants in the Bloomberg Professional Global Confidence Index. The deterioration in the labor market is abating and household spending appears to be expanding at a moderate rate, the Open Market Committee said.
Crude oil for January delivery fell as much as 0.7 percent to $72.16 a barrel in New York and traded at $72.33 at 2:09 p.m. Singapore time. Gold for immediate delivery dropped as much as 0.8 percent to $1,128.60 an ounce and traded at $1,129.63.