Oil Gains a Second Day After Fed Commits to Low Interest Rates
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Oil rose for a second day in New York, reaching a one-week high on speculation that Federal Reserve plans to keep U.S. interest rates near a record low will bolster investor demand for commodities.
Futures advanced as much as 1.6 percent after the Fed’s announcement sent the dollar to its lowest in more than a month against the euro, making assets priced in the U.S. currency more attractive. The Federal Open Market Committee said yesterday it expects its benchmark interest rate to stay “exceptionally low” at least until late 2014. A wider ban on Iranian oil than that announced this week by the European Union could boost crude by $30 a barrel, the International Monetary Fund said.