Dollar's Slide Pushing Oil Prices Higher

Economic data hammers the greenback as worries about US economy deepen
By Jim O'Neill,  Newser User
Posted Feb 29, 2008 7:21 AM CST
High gas prices are posted at Shell gas station in San Mateo, Calif., Thursday, Feb. 28, 2008. Crude prices rebounded Thursday, shooting up more than $2 a barrel to a new record as a falling dollar and...   (Associated Press)
camera-icon View 2 more images

(Newser) – The dollar continued its fall as unrelentingly dismal economic data eroded confidence in the US economy, Bloomberg reports. The greenback set a new low of $1.52 against the euro this morning and hit a three-year bottom against the Japanese yen. Oil surged more than $2 a barrel to $103.05 in Asian trading before closing at $102.92. 

As oil prices climb, retail gasoline prices continued to push into near-record territory, reports the AP; the price at the pump added nearly a penny overnight to a national average of $3.161 a gallon. US officials expect the price to top out this spring near $3.40, but analysts predict the price could climb significantly higher.