Stronger dollar has little effect on oil prices

Oil prices were essentially flat to end the week after Federal Reserve Chairman Ben Bernanke said this week that interest rates will have to be raised when the economy recovers in order to avoid inflation.

It has been the weak dollar that has attracted billions in investments in energy markets this year because oil is priced in the U.S. dollar, essentially making crude cheaper globally. The dollar bounced back Friday following Bernanke’s comments, and crude prices rose only 8 cents after they had rallied strongly Thursday wheat he U.S. currency hit a 14-month low against the euro.

Rising investor demand pushes oil prices higher

Crude prices settled above $71 a barrel Tuesday as a falling dollar pushed investors to seek out commodities such as oil and gold.

Benchmark crude for October delivery gained $3.08 to settle at $71.10 a barrel on the New York Mercantile Exchange. The contract had settled at $68.02 on Friday after rising 6 cents.

The dollar fell to a low for the year Tuesday against the euro and several other currencies as gold prices surpassed $1,000 an ounce . Investors often turn to commodities as a hedge against inflation and dollar weakness.

Euro below $1.40 for first time in six months

The euro broke below $1.40 Thursday for the first time in six months as investors in search of safety bought up the dollar after disappointing economic reports.

Ongoing worries about public finances in the eurozone brightened the dollar's shine.

The dollar has tended to benefit on uncertainty since the financial crisis in fall 2008. Weaker-than-expected economic data in the U.S., shake-ups in financial regulation and fears of default on European government debt helped drive the greenback higher Thursday, continuing its gains over the past two months.

Why strong dollar means weak profits

NEW YORK – A robust dollar sounds like a good thing. But for U.S. companies that do a lot of business in foreign markets, it can turn seemingly strong overseas sales into much weaker ones.

As companies that make and sell goods abroad report their latest quarterly financial results, many are blaming lower profits on currency exchange rates.

How serious a hit are U.S. companies taking from the strength of the dollar? Here are some questions and answers.

Fuel prices surge on weaker dollar news

The dollar’s sway over energy markets was on full display Wednesday, with oil and gasoline futures rising sharply as the U.S. currency tumbled to 15-month lows.

Crude prices had been trading relatively flat, even after the government reported supplies grew by 1 million barrels last week.

At midday, however, the dollar began to slide against the euro, and crude prices jumped along with gasoline and other crude-based fuels.