Dollar sinks, Swiss franc strengthens on oil fears

NEW YORK (CNNMoney) -- The greenback suffered a wide retreat Thursday, as worries over spreading violence in the Middle East pushed oil prices in excess of $100 a barrel.

Rising oil prices are a negative force on the dollar, because the U.S. economy relies to a large degree on oil imports.

Oil prices held steadily above $100 a barrel Thursday, after briefly breaking the barrier the previous day. Early in the morning, the U.S. benchmark oil contract for April delivery jumped as high as $103 a barrel.

Kathy Lien, the director of currency research at Global Forex Trading, said the persistent rise in oil prices was driving currency markets -- to the detriment of the dollar.

The greenback suffered losses against almost every currency, because at the end of the day -- the U.S. economy will be hurt a lot more than other countries by rising oil prices, Lien said.

Usually thought of as a "safe-haven" currency, the dollar was a place to invest during periods of upheaval. But with crude prices increasing so rapidly, investors have been forced to look elsewhere.

According to Lien, the Swiss Franc and Japanese Yen are the primary beneficiaries of the dollar pushback. On Thursday, the Swiss franc rose to an all-time high against the dollar.

Swiss currency has spiked more than 20% against the dollar since June, with Europe's sovereign debt crisis and the recent rise in oil prices providing most of the boost.

The Franc is particularly attractive to risk-averse investors for a few reasons. Switzerland, unlike many other countries in Europe, has a relatively low debt level -- and its economic recovery has outpaced that of the United States.

And compared to the U.S., its economy is far less dependent on oil, and should weather the current crisis with comparative ease.