What is the relationship between the dollar exchange rate and the price of crude oil?
Crude oil prices, the world economy will be affected, including the United States, the world's largest oil consumer. Crude oil prices brought about by the inflation pressure will bring pressure to devalue the dollar, and the direct consequence caused by the depreciation of the dollar is a dollar denominated crude oil prices also will increase.
The relationship between crude oil and the dollar is different from that of gold. The price of gold is influenced by the dollar. The price of crude oil and the price of the dollar reflect an interactive relationship
Of course, in turn, the decline in oil prices, is a good sign for the economy, people have confidence in the U.S. economy will push up the dollar, cause prices to fall further. According to expert estimates, the correlation coefficient between crude oil prices and the dollar exchange rate is -0.7., that is to say, the weak dollar and high oil prices often appear at the same time. So, the dollar with the trend of crude oil price should be changed in the opposite direction.
