AlexS

A Closer Look at the Dollar Rally

It would be interesting to make a graph of oil prices and dollar strength. I think it more likely that the dollar follows oil rather than the other way around. This gives substance to the recent dollar strength as a reaction to oil prices, which in turn is affected by some combination of 1) the slowdown in transportation in the U.S. in response to high prices, 2) the slowdown in industry/transportatio... in China relative to the Olympic Games, 3) the release of pent up stored supply, which had reached a maximum shortly before oil starts to fall.