LONDON, June 30, 2008 (AFP) – The euro rose against the dollar on Monday as oil prices rocketed past 143 dollars per barrel for the first time, while traders awaited this week’s expected rate rise from the European Central Bank.
The European single currency rose to 1.5823 dollars in morning London trading from 1.5775 dollars in New York late on Thursday.
Against the yen, the dollar fell to 105.16 yen from 106.01.
In world commodity markets, crude oil prices hit record highs above 143 dollars per barrel, driven by tight supplies and the weak US currency, analysts said.
The struggling greenback stokes demand for dollar-priced oil which becomes cheaper for traders holding stronger currencies.
Commerzbank analyst Gavin Friend predicted that the euro would not pull above 1.60 dollars before an widely-expected interest rate hike from the European Central Bank (ECB) on Thursday.
“Oil has the capacity to pull euro/dollar higher and back above 1.60 dollars, but we do not see this happening ahead of Thursday,” said Friend.
“Euro/dollar may ease back come Thursday if as we suspect Trichet signals no further tightening for now.”
Earlier this month, ECB president Jean-Claude Trichet had said the bank coul