A commodities rally stalled Thursday as a slightly stronger dollar gave investors an excuse to cash in recent profits. The dollar rose against the euro and the British pound after central banks in Europe kept their benchmark interest rates at low levels. Keeping borrowing costs low for consumers can help stimulate an economy, but it can also discourage investing in a country's currency and drive investors to look for higher returns elsewhere, in this case, the dollar. The modest gains in the dollar come after several days of declines that had helped drive commodities higher. Commodities are priced in dollars, so the weaker the greenback is, the more attractive commodities are to foreign investors. At the same time, the economic outlook has been improving, leading investors to bet that demand for basic materials will soon increase and send commodities prices higher.
