* Nigerian rebels say blow up Shell wellhead in Niger Delta

Oil rose towards $71 a barrel on Friday after Nigerian rebels said they blew up a wellhead in a Royal Dutch Shell oilfield and as equity markets rallied on perceptions the global recession was easing.

In the currency market, the dollar was down against the euro. Late Friday, the euro was trading at $1.3268 vs. $1.3224 on Thursday.

In the currency market, the dollar was sharply higher against the euro. Late Friday, the euro was trading at $1.2751 vs. $1.2932 on Thursday.

In the currency market, the dollar rallied again against the euro. Late Friday, the euro was trading at $1.5383 vs. $1.5421 on Thursday.

Consumer sentiment is in the dumps. This from MarketWatch:

U.S. consumer sentiment dropped to the lowest level in nearly 28 years in May as worries about inflation grew, according to the University of Michigan/Reuters consumer sentiment index released Friday.

The UMich index fell from 62.6 in April to 59.8 in May, marking the lowest since June 1980. The preliminary May index was reported at 59.5 two weeks ago.

I don’t know at this point if this is a true reversal of the dollar rally or a false dawn… But either way… Just to see some chinks in the dollar right about this time is probably a good thing to currency holders!