Oil Prices Rise after US Fed Hikes Rates, Weakening Dollar
Singapore, February 02 (QNA) – Oil prices rose in early Asian trade on Thursday after the US Federal Reserve raised interest rates by 25 basis points, sending the dollar lower.
Brent crude futures rose 56 cents, or 0.7%, at $83.40 a barrel while West Texas Intermediate (WTI) US crude futures rose 65 cents, or 0.8%, to $77.05 a barrel.
The Federal Reserve raised its target interest rate by a quarter of a percentage point on Wednesday, yet continued to promise “ongoing increases” in borrowing costs as part of its ongoing battle against inflation.
The US dollar last fell 0.3% in the session against a basket of currencies, at 101.15. A weaker greenback makes US dollar-priced oil less expensive for holders of other currencies, boosting demand. (QNA)