In forex market action, the US Dollar touched a 6 and a half months high against the Euro. The Euro had fell to 1.39 against the Dollar, its worst showing since mid-July, as investors worried that greece may not be able to service its debt, putting pressure on the Euro and raising fears the country could be forced out of the Euro zone. The dollar index is currently around the 79 mark.
In the commodity space, copper headed for its longest losing streak in seven weeks and aluminium dropped to the lowest level in more than a month. Zinc slumped to a two-month low and lead declined to its lowest price in four months.
Crude prices fell holding near six-week lows after data showed fuel demand has not recovered from the worst US financial crisis in decades.
By Manisha Gupta, Commodities Editor at CNBC-TV18
Commodity & currency
Unwinding of short dollar and long commodity continued on Thursday.
Nymex Crude March contract headed for 3rd weekly decline. It declined 3 cents to USD 73.64 a barrel on fears of Greece unable to financial budget deficit. Strong dollar and weak earnings also impacted.
Base metals
Base metals declined on low risk appetite and strong dollar, also on fears over effects of tighter China policy.
Comex Copper fell to 2.5-month low post US jobless claims and durable goods orders. Copper was down 4.7% and zinc down 3.5%. Aluminium fell 3.8%.
Gold
Gold hit a low of $1073/ounce on strong dollar and Obama's plans. It has declined 5% in January.
