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FOREX-Dollar bolstered by oil, stocks; yen suffers

Wed Jul 23, 2008 6:56am EDT
 
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* Dollar gains broadly, risk appetite improves

* Greenback supported by Fed rhetoric, falling oil price

* Euro hits record high at 169.98 yen <EURJPY=>

(Changes byline, updates prices, adds quotes)

By Toni Vorobyova

LONDON, July 23 (Reuters) - The dollar hit a one-month peak against the yen and a two-week high versus the euro on Wednesday, buoyed by a sharp slide in oil prices, a recovery in stocks and hawkish rhetoric from U.S. officials.

With oil more than $20 below this month's record peaks CLc1 and world stocks on a six-day winning streak for the first time in two months .MIWD00000PUS, the improved risk appetite pushed the low-yielding, safe-haven yen to a record low against the euro as investors sought higher returns elsewhere.

Philadelphia Federal Reserve President Charles Plosser, a known hawk, said on Tuesday that rising inflation could force the Fed to start raising interest rates even before labour and financial markets recover, giving the dollar a boost.  Continued...

 

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