Oil Falls Below $70 on Stronger Dollar

Crude prices plunged below 70 U.S. dollars a barrel on Monday as the dollar strengthened against a basket of major currencies, reducing hedge appeal of commodities.

Light, sweet crude for October delivery dropped 2.33 dollars, or 3.2 percent, to settle at 69.71 dollars a barrel on the New York Mercantile Exchange. The contract earlier touched an intra-day low of 68.96 dollars a barrel.

The dollar traded at a one-week high on Monday, giving crude a hit as the stronger currency undermined demand for dollar-priced oil, often used to hedge against inflation.

Meanwhile, Wall Street declined on rising concerns that equities had outpaced the outlook for economic growth, dragging oil prices lower.

In London, Brent Crude for November delivery fell 2.73 dollars to 68.59 dollars a barrel on the ICE Futures exchange.