Markets mirror performance of greenback

London

COMMODITY markets swung between losses and gains last week, mirroring the performance of the US dollar. The US currency, which at the start of the week was pushing the euro towards parity, began to fall after the Federal Reserve dropped its pledge to remain "patient" on raising US interest rates. The dropping of the key word from its policy statement at the end of a two-day meeting was a significant step away from its crisis-based monetary policy since 2008 that resulted eventually in the Fed cutting its main rate to zero. Additionally last week, a cautious Federal Reserve marked down its growth forecast for this year by 0.3 percentage point to 2.3-2.7 per cent after noting that US economic growth had "moderated somewhat" since January.

New York's main contract fell to US$42.05 a barrel on Wednesday, its lowest level since March 2009, with the market under persistent pressure from large supplies of crude and a strong US dollar, traders said.