"Oil had a couple of things going on today -- most notably, the dollar went through its low from September," explained Darin Newsom, senior analyst with DTN, a market information service in Omaha, Nebraska. "So we've got this pressure in the dollar, and that is sparking all kinds of buying interest in commodities." Investment in the commodity is increased when the value of the dollar falls because oil is traded in the greenback and investors holding other currencies are able to purchase oil at a cheaper price. "We saw the dollar coming under pressure today on the idea that maybe the economy is still going to sputter around here for a while as we go into the fourth quarter, early first quarter of next year," Newsom continued.
"Even though the Federal Reserve hinted that in 2010 we would start to see interest rates possibly start to go up, certainly there is no indication now that is going to happen any time soon; and again with the dollar moving to the new low, it would seem to confirm that idea that we're in this time where we're going to just hold low interest rates.....read the entire article
