LONDON (AFP) - The price of oil hit 80 dollars for the first time in a year on Tuesday thanks to growing optimism surrounding global economic recovery, before pulling back on profit-taking, traders said. New Yorks main contract, light, sweet crude for delivery in November, reached 80.05 dollars a barrel the highest point since October 14, 2008 as a weak US currency increased demand for crude oil. It later stood at 79.32 dollars, down 29 cents compared with Mondays closing level. Elsewhere on Tuesday, Brent North Sea crude for December delivery dipped 27 cents to 77.50 dollars. Oils recent spike higher breached 80 dollars as a weak US dollar and a strong technical outlook continued to offer strong support, said Hanson Westhouse analyst David Hart. Also helping were equity markets that were also higher as earnings in the United States have thus far been a net positive and a more optimistic economic outlook. Wall Streets Dow Jones Industrial Average had on Monday scaled a new high for the year at 10,117.96 points. Expectations that third-quarter US corporate earnings would reflect the economys recovery from a prolonged recession were the main reason behind the surge in the US equity markets, analysts said. US tech giant Apples fourth-quarter earnings added to the upbeat mood as the California-based company on Monday reported a net profit of 1.67 billion dollars on record sales of iPhones and Macintosh computers. The slumping dollar boosted crude prices because a weak greenback makes dollar-priced crude cheaper for holders of stronger foreign currencies, ramping up demand for oil. In the foreign exchange market on Tuesday, the European single currency spiked to 1.4994 dollars at one point, which was the highest level since August 2008. Sucden Financial Research analyst Nimit Khamar said that financial market movements and the flagging dollar was dictating oil market movements. The financials (markets) and the currencies are completely overwhelming the fundamentals (of oil supply and demand) and on this basis, further gains can not be ruled out, Khamar said. He also warned: Crude prices could be susceptible to a sharp correction as a rally not supported by fundamentals can not be sustained indefinitely.