FOREX-Dollar knocked by geopolitical tensions, oil

Wed Jul 9, 2008 11:57am BST
 
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* Tensions in Iran, Turkey weigh on dollar

* Oil resumes climb as geopolitical worries grow

* Dollar index down 0.25 pct at 72.775

(Changes byline, updates prices, adds quotes)

By Toni Vorobyova

LONDON, July 9 (Reuters) - The dollar eased on Wednesday as oil prices rebounded, after geopolitical tensions were pushed back onto investors' radar by news of Iran test-firing missiles and of an armed attack on the U.S. consulate in Turkey.

Iran's state media reported Iran had test-fired nine long- and medium-range missiles, including one which it has previously said could reach Israel and U.S. bases in the region.

Tensions in the region were further stoked after three policemen and three gunmen were killed in an attack on the United States consulate in Istanbul.

Also in Turkey, three German tourists were kidnapped by Kurdish guerrillas, broadcaster CNN Turk reported a local governor as saying.  Continued...

 
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