LONDON, 28 October 2004 — The dollar surged yesterday against the euro and the pound, while the yen also gained, as oil prices dropped heavily after US oil inventory data revealed a strong build in crude stocks. The single European currency stood at 1.2725 dollars in late European trading against 1.2768 late on Tuesday in New York. The euro had scaled an eight-month summit of 1.2842 dollars overnight Monday-Tuesday before the greenback clawed back. The dollar was changing hands at 106.69 yen from 106.70 on Tuesday.
The euro was changing hands at 1.2725 dollars from 1.2768 late on Tuesday in New York, 135.71 yen (136.24), 0.6944 pounds (0.6958) and 1.5336 Swiss francs (1.5335). The dollar stood at 106.69 yen (106.70) and 1.2055 Swiss francs (1.2011). The pound was at 1.8315 dollars (1.8346), 195.40 yen (195.76) and 2.2085 Swiss francs (2.2035).
Oil prices plunged yesterday as news of a rise in US crude oil stockpiles calmed market fears of a supply crunch during the northern hemisphere winter. New York’s main contract, light sweet crude for delivery in December, slumped to a low of $53.00 a barrel and was trading late in the morning at $53.70, still down 1.46 dollars.
In London, the price of Brent North Sea crude oil for delivery in December tumbled by 1.41 dollars to $50.15 a barrel in late deals. Brent initially reached a new all-time peak of $51.94 after the US Energy Department said heating oil inventories, in high demand in the northern hemisphere winter, slipped 600,000 barrels to 48.9 million last week.
New York’s main crude oil contract plummeted 4.5 percent as traders were swept with relief by news of a surge in US commercial crude oil inventories. Light sweet crude for delivery in December plunged $2.47, or 4.5 percent, to a low of $52.70 midafternoon.
US stocks rose yesterday on investor relief that oil prices fell sharply after a higher-than-expected rise in crude stocks last week. The US Energy Information Administration said crude oil inventories rose by four million barrels last week to 283.4 million. Analysts surveyed by Reuters had forecast an average rise in crude stocks of 1.4 million barrels.
The Dow Jones industrial average was up 63.34 points, or 0.64 percent, at 9,951.82. The Standard & Poor’s 500 Index was up 7.70 points, or 0.69 percent, at 1,118.79. The technology-laced NASDAQ Composite Index was up 29.53 points, or 1.53 percent, at 1,958.32.
Asian stocks closed little changed as record oil prices and uncertainty over the outcome of the US presidential election outweighed Wall Street’s strong rally overnight, dealers said in Tokyo. They said the Wall Street lead would normally have been enough to ensure a positive day in Asia but the bounce in New York was seen as part of the recent pattern there — a sharp gain in a market which overall continues to slide.
Japanese share prices closed 0.18 percent higher in cautious trade amid concerns about the possible impact on the economy of the sustained series of quakes in northern Japan, dealers said. The Tokyo Stock Exchange’s benchmark Nikkei-225 index gained 19.49 points or 0.18 percent to 10,691.95, off a high of 10,777.43 seen before another tremor hit northern Japan in the morning.
South Korean share prices closed 0.47 percent lower, giving up early gains driven by bargain-hunting as investors quickly sold down exporters after the won hit a four-year high, dealers said. The KOSPI index closed down 3.79 points at 809.91, off a high of 822.30 and a low of 803.72. Volume was 299 million shares worth 1.9 trillion won ($1.57 billion).
Hong Kong share prices closed 0.11 percent lower on continuing concerns over high oil prices, with many investors staying on the sidelines ahead of the settlement Thursday of futures contracts, dealers said.