Stocks Rally on Dollar's Strength

Drop in oil, strong greenback pushes Dow to weekly gains
By Nick McMaster,  Newser Staff
Posted Jun 13, 2008 3:14 PM CDT
Sir R. Allen Stanford, center, chairman of Stanford 20/20 Cricket, and the England and Wales Cricket Board (ECB), pose in front of a box containing 20 million US dollars.   (AP Photo/Lefteris Pitarakis)
camera-icon View 2 more images

(Newser) – The markets rallied today, pushing the Dow into positive territory for the week, off a strong dollar and a drop in oil prices. The Dow gained 165.77 to close at 12,307.35, a weekly gain of 0.8%. The Nasdaq climbed 50.15 to 2,454.50 but posted a weekly loss of 0.8%. The S&P 500 gained 20.16, settling at 1,360.03, flat for the week.

Investors concerned about inflation were mollified the dollar’s surge and a Labor Department report that the core price index, which excludes volatile fuel and food costs, rose only 0.2%, in line with healthy economic forecasts. Oil futures fell to $134.62 off the dollar’s surge. "The market breathed a sigh of relief, with the core number coming in line," one equity strategist told MarketWatch.