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Dollar Rises Against Euro, Yen as Oil, Commodity Prices Decline
By Agnes Lovasz
March 20 (Bloomberg) — The dollar rose to its strongest in a week against the euro as speculation a global economic slowdown will reduce demand for raw materials pushed gold and oil lower.
The European common currency declined after Credit Suisse Group said it may have a loss this quarter because of writedowns on debt securities. The dollar climbed to the highest level in more than a week versus the currencies of its major trade partners as crude dropped after a U.S. government report showed weaker demand for fuel.
“The main driver is the liquidation of long commodity positions, specifically crude oil,” said Lee Hardman, a currency strategist in London at Bank of Tokyo-Mitsubishi UFJ Ltd. “That’s potentially been a positive for the dollar on the back of the drop in commodity prices.”
The dollar advanced to $1.5451 per euro as of 11:01 a.m. in London, the strongest since March 12, from $1.5626 yesterday in New York. It gained 1 percent to 99.85 yen, from 99.03 yesterday. The European common currency traded at 154.32 from 154.80.
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