Oil prices fell sharply this evening as the US dollar gained against foreign currencies, slashing the flow of investment into oil and other commodities.
Oil prices fell below $80 a barrel as the dollar gained against the euro on worries over Greece's debt. US crude shed $2.27 a barrel to $79.93, while London Brent crude fell $2.19 to $79.29.
Concerns over Greece's mounting debt helped push the euro to a more than two-week low against the dollar and set the European single currency on track for its worst weekly performance since January.
A stronger dollar makes oil, priced in dollars, more expensive for foreign currency holders. It also denotes investors moving away from assets deemed riskier, like commodities and equities, and into safe-haven bets like US Treasury bonds.
Commodities also fell after India's Central Bank raised interest rates in a bid to stem inflation in one of the world's top energy consumers. The move in India comes after China has also tightened monetary policy by boosting bank reserve requirements this year.
