U.S. DOLLAR HITS NEW LOW VERSUS EURO

The dollar weakened further Thursday, hitting a new low of $1.5644 to the euro. In addition, Venezuela appears to be experimenting with requiring that payments for oil be made in euros instead of dollars. If this were to catch on and spread to other OPEC nations, demand for the dollar would plummet, causing accelerated weakening of the dollar and further strengthening the euro.

From Reuters:

The dollar extended losses late on Thursday, hitting fresh record lows against the euro, in selling driven by technical factors.

The euro rose to $1.5644 against the dollar for the first time since it was launched, according to Reuters data. It last traded at $1.5627.

Late on Thursday, Reuters reported that Venezuelan state oil company PDVSA is requiring payment in euros in a recently opened fuel export contract, citing a trader who has purchased a cargo under the contract.