Financial Times FT.com

Dollar and oil hit new records

By Michael Mackenzie in New York

Published: October 29 2007 20:20 | Last updated: October 30 2007 01:12

Oil hit a new record high of $93.80 and the dollar struck a new low yesterday as investors showed their growing certainty that the US Federal Reserve will cut interest rates on Wednesday.

The same conviction also saw gold approach $800 a troy ounce – its highest price for 28 years – while equities made gains. The move into gold reflects how investors fear rising inflation from the twin forces of higher oil prices and a weaker dollar.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this