Tumbling oil drives down commodity currencies, market inflation gauge

LONDON (Reuters) - A collapse in oil prices drove commodity currencies and a key indicator of euro zone markets' long-term inflation expectations sharply lower on Friday.

U.S. crude oil futures fell to $29.61 a barrel, their lowest since November 2003, a move that weakened oil-related currencies. The Australian dollar fell to a seven-year low against the U.S. dollar, while the Canadian dollar and the Norwegian crown shed more than 1 percent on the day.

The five-year, five-year forward breakeven rate , which shows where investors expect 2026 price growth forecasts to be in 2021 and is closely followed by the ECB, fell below 1.60 percent for the first time in three months.

(Reporting by John Geddie and Patrick Graham, editing by Nigel Stephenson)