U.S. shale revolution beginning to support dollar, analysts say

The U.S. shale oil revolution is beginning to exert a direct benefit to the U.S. dollar, UBS currency strategists say as a booming U.S. energy sector helped the U.S. trade deficit narrow to the smallest since late 2009.

The dollar will benefit over time from the energy revolution, Societe Generale says: “Global reserve currency status allied with less dependence on foreign investors will boost the currency on a five-year view.”

According to a BNP Paribas study, the combination of higher exports and reduced petroleum imports could benefit the dollar’s fundamental equilibrium exchange rate by as much as 16% on a 10-year horizon.


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Comments (2)
  • Mike Maher
    , contributor
    Comments (2867) | Send Message
    Been saying this for years. The nat gas export terminals will help as much as importing less oil.
    8 Jan 2014, 11:32 AM Reply Like
  • youngman442002
    , contributor
    Comments (5123) | Send Message
    But they still will be printing 1 or two trillion in fresh greenbacks.....and the rest of the world will want to get away from them...
    8 Jan 2014, 12:10 PM Reply Like
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