Crude, gold hit new peak as dollar falls
Crude oil rose above US$98 per barrel and gold touched a new 27-year peak after the dollar declined to a new record low versus the euro amid nagging worries about the health of the US economy. A weak dollar makes commodities denominated in the US currency attractive as a natural hedge. The cost of buying these commodities falls for buyers who pay in non-dollar currencies. The dollar slumped to a new life-time low against the euro after Chinese officials indicated that the country could shift some of it's huge US$1.43 trillion foreign exchange reserves in response to a falling greenback.
Govt defers fuel price hike
With Diwali just a couple of days away and a political consensus nowhere in sight, the Government deferred a plan to effect a marginal hike in retail prices of petrol and diesel. Petroleum Minister Murli Deora said the Government would decide next week on ways to stem the losses of public sector oil marketing companies (OMCs) reeling under the burden of record high crude prices. "We are considering various alternatives, including duty restructuring and increase in prices," Deora said. "I cannot say 100%, but we will try to resolve it next week," he said.