Dollar

Weak Oil and Strong Dollar – A puzzling relationship

Introduction The relationship between oil price and dollar value is intriguing not only to the US and the oil-exporters, but to researchers and governments all over the world. Most commodities, including oil tend to be negatively correlated with the US dollar as most commodities are traded in dollar. The magnitude of the impact of dollar on oil and vice versa and its short term and long term impact on the economy provide interesting insights about the widely studied relationship between...