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Brent crude falls to 4-week low as dollar rallies

Published 08/04/2011, 02:18 AM
Updated 08/04/2011, 02:20 AM

SINGAPORE, Aug 4 (Reuters) - Brent crude dropped to a one-month low on Thursday after Japan intervened to stem the rise in its yen currency, sending the dollar soaring as investors steered clear of riskier assets, including commodities.

Worries about slowing global growth and Europe's worsening debt crisis dampened investor enthusiasm, after a tentative comeback in risk appetite that gave a modest boost to Asian shares.

Uncertainty prevailed before Thursday's weekly U.S. jobless benefits claims report and Friday's key nonfarm payrolls data that is forecast to show the economy gained 85,000 jobs in July. The data may shed further light on whether a recovery in the world's largest economy is faltering.

Brent fell 53 cents to $112.70 a barrel by 0610 GMT, extending a slump of more than $3 on Wednesday. U.S. crude shed 16 cents to $91.77, after dipping for a fourth straight session on Wednesday, when it traded as low as $91.22, the lowest since June 28.

(Reporting by Alejandro Barbajosa; Editing by Clarence Fernandez)

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