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Fed’s move sends euro, oil, other commodities soaring

Published on 17/03/2008

17 March 2008

Frankfurt (dpa) – The euro soared to new highs Monday after the US Federal Reserve moved to cut its key rate and ease lending, with the single European currency passing the mark of 1.59 dollars.

Oil also rose in price. West Texas Intermediate went to above 111 dollars a barrel, while gold, platinum and commodities as diverse as wheat and base metals also traded at historic highs.

Investors were rushing to what they saw as safe-haven investments, traders said. The end was not yet in sight.

The euro was recorded at 1.5903, before declining to levels around 1.58 dollars. The European Central Bank set a reference of 1.5561 on Friday.

The dollar also posted a 12-year low to the Japanese currency, hitting a low of 95.72 yen.

Gold was trading at above 1,032 dollars a fine ounce.

[Copyright dpa 2008]