By Ron Harui
Dec. 30 (Bloomberg) -- The euro rose against the dollar as the conflict between Israel and Hamas in the Gaza Strip drove up oil prices on concern about possible supply disruptions, reducing the greenback’s attractiveness.
The common European currency also climbed versus the yen on speculation investors will seek higher returns in the 15-nation region amid signs Japan’s central bank will keep interest rates near to zero.
“Investors appear to be shifting into the euro out of the dollar,” said Motonari Ogawa, director of currency trading in Tokyo at Barclays Capital Inc. “Mideast tensions aren’t good for the U.S. economy.”
The euro rose 0.7 percent to $1.4020 as of 8:46 a.m. in Tokyo from $1.3927 late in New York yesterday when it reached $1.4364, the highest level since Dec. 18. It also climbed 0.7 percent to 127.08 yen from 126.26 yen.
Crude oil for February delivery rose for a third day, climbing 0.2 percent to $40.09 a barrel in electronic trading on the New York Mercantile Exchange.
To contact the reporters on this story: Ron Harui in Singapore at rharui@bloomberg.net
Last Updated: December 29, 2008 18:56 EST
The common European currency also climbed versus the yen on speculation investors will seek higher returns in the 15-nation region amid signs Japan’s central bank will keep interest rates near to zero.
“Investors appear to be shifting into the euro out of the dollar,” said Motonari Ogawa, director of currency trading in Tokyo at Barclays Capital Inc. “Mideast tensions aren’t good for the U.S. economy.”
The euro rose 0.7 percent to $1.4020 as of 8:46 a.m. in Tokyo from $1.3927 late in New York yesterday when it reached $1.4364, the highest level since Dec. 18. It also climbed 0.7 percent to 127.08 yen from 126.26 yen.
Crude oil for February delivery rose for a third day, climbing 0.2 percent to $40.09 a barrel in electronic trading on the New York Mercantile Exchange.
To contact the reporters on this story: Ron Harui in Singapore at rharui@bloomberg.net
Last Updated: December 29, 2008 18:56 EST
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