Dollar climbs as oil dips
Investors boost dollar as crude prices fall and Germany, Europe's largest economy, shows weakness.
NEW YORK (CNNMoney.com) -- The dollar climbed against major currencies Wednesday, reversing a 2-day losing streak as a read on Germany's economy continued to show weakness.
The greenback rose against the 15-nation euro, which fell slightly to $1.4736 during New York trading. The dollar also rose against the Japanese yen, buying ¥109.83, up from ¥109.67 a day earlier.
German economy: Investors saw further weakness in the euro after reports released late Tuesday showed continued decline in the German economy.
Germany's ZEW index, which measures economic sentiment in Europe's largest economy, improved slightly, but remained negative. The index rose to negative 55.5 points from negative 63.9 points.
Another report from Germany showed that wholesale inflation had risen to a rate of 8.9% in July.
Economic reports from Europe were relatively sparse on Wednesday, but it was enough to offset a U.S. report that showed wholesale prices had risen to their highest annual rate since 1981.
"The general point still stands, that much of the strength behind the dollar is economic weakness elsewhere," said Vassili Serebriakov, currency strategist with Wells Fargo.
Oil balance: The dollar gained strength despite rising oil prices, after a government inventory report showed a greater-than-expected decrease in unused gasoline.
Many investors have been using oil and other commodities as a hedge against inflation, which had driven oil up and the dollar down. But as oil prices began to show weakness, that money returned to the dollar market, driving up the buck again.
"The movements in oil and the dollar have come hand-in-hand in recent months," said Serebriakov. 
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