* MSCI world equity index down 1 percent to 250.18
* Dollar rises after G8 on Russia, IMF comments
* Oil falls 1.6 pct, weighing on energy, commodity shares
By Natsuko Waki
LONDON, June 15 (Reuters) - The dollar rose across the board
on Monday after Russia said the U.S. currency's role as the
world's main reserve currency was unlikely to change in the near
future, hitting energy and commodity prices and related shares.
After a weekend meeting in southern Italy, finance chiefs
from Group of eight said they believed their economies are
stabilising but recovery from the credit crisis remained shaky.
Ministers also said they have started to consider how to unwind
rescue steps for their economies once recovery is certain.
While the G8 communique made no reference to the dollar,
Russian Finance Minister Alexei Kudrin said on the sidelines of
the meeting that the dollar's role as the main reserve currency
was unlikely to change in the near future.
IMF managing director Dominique Strauss-Kahn told Reuters in
an interview at the G8 that the dollar has been correctly valued
by the market. The U.S. currency's strength weighs on energy and
commodity prices as they are priced in dollars.
"The dollar is stronger across the board and this is
predominantly to do with the comments made by Russia's finance
minister at the G8," said Michael Klawitter, senior currency
strategist at Dresdner Kleinwort in Frankfurt.
The dollar <.DXY> rose 0.8 percent against a basket of major
currencies while the euro fell 0.7 percent to $1.3879 <EUR=>.
Kudrin's remarks came ahead of the first summit of leaders
of Russia, China, India and Brazil on Tuesday in the Russian
city of Yakaterinburg, at which the leaders are expected to
discuss issues including foreign reserve diversification.
COMMODITIES PRESSURED
Shares of mining and oil shares led the move lower in world
stocks. MSCI world equity index <.MIWD00000PUS> fell 1 percent,
moving further away from a 7-1/2 month high hit earlier this
month.
"While there is a sense of optimism, there are also
questions about whether economic indicators have really
recovered to where they were before," said Daisuke Uno, chief
strategist at Sumitomo Mitsui Banking Corp in Tokyo.
The benchmark MSCI index finished last week on a positive
note, posting the third consecutive weekly gains.
The FTSEurofirst 300 index <> fell 1.6 percent.
Emerging stocks <.MSCIEF> also lost 1.6 percent.
U.S. crude oil <CLc1> dropped 1.6 percent to $70.90.
Shanghai copper fell by its 5 percent limit and London futures
broke below $5,100 a tonne.
"Stabilising dollar outlook could trigger a mini chain
reaction which might look like setting the starting point for a
new equity bear market," BNP Paribas said in a note to clients.
"Indeed, the stabilising dollar will take the momentum out
of the speculatively over-extended commodity market, causing
related currencies to decline. The dollar will receive
additional support via this liquidation effect."
The June bund futures <FGBLc1> hit a one-week high of 119.06
as equity markets fell.
(Additional reporting by Jessica Mortimer; Editing by
Victoria Main)
