Paulson says don't blame the buck for high oil price

By Matt Falloon and David Lawder

LONDON (Reuters) - A weaker dollar cannot be blamed for soaring oil prices as policymakers around the world tussle with the twin spectres of rising inflation and slowing growth, U.S. Treasury Secretary Henry Paulson said on Thursday.

Some of the world's leading oil producers and market analysts say the weak dollar is a key factor spurring many dollar-denominated commodities -- including oil -- to record highs, pushing the cost of living higher across the world.

It is rare for the United States government to say anything about the greenback beyond its mantra that it believes in a strong dollar, but developed nations are ramping up the rhetoric in an effort to get oil producers to increase supply and help tame inflation.

"The dollar has had a very small impact," Paulson told reporters in London, after a meeting with top bankers and Chancellor Alistair Darling.

"Take a look, the dollar has depreciated roughly 24, a little bit less than 25 percent, since February 2002. Oil has gone up well over 500 percent. It's gone up in every currency."

The dollar is currently languishing near record lows against the euro after a run of aggressive interest rate cuts from the U.S. Federal Reserve and worries over U.S. economic growth.

Oil prices hit a fresh record high above $145 a barrel on Thursday. Prices have doubled in the past year.

Inflation has now taken top billing in most central bankers' deliberations, with markets expecting higher borrowing costs despite sharply slowing growth in Europe and the United States.