Crude oil zoomed to a record close above $98 per barrel in New York on Tuesday as investors sold off the dollar, sending it to a record low against the euro.

Crude oil futures for January delivery, seen by investors as a hedge against the falling dollar, were up $3.39, or 3.6 percent, to settle at $98.03 per barrel on the New York Mercantile Exchange. Futures went as high as $98.30.

Brent crude futures for January rose $3.21, or 3.5 percent to end at $95.49, a new record in London's ICE Futures Europe exchange. It rose as high as $95.75 per barrel.

Meanwhile, the dollar dropped to a record low versus the euro on Tuesday, amid worries that credit-market turmoil will result in slower economic growth. The dollar fell as low as $1.482 per euro, the lowest value since the euro began trading in 2008 Investors also expect the Federal Reserve to continue to lower interest rates to give an additional boost to the economy.

Crude oil