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An FT column argues the dollar now behaves like a commodity currency because the US is a net energy exporter. Rising oil prices strengthen the dollar, which hurts oil-importing emerging economies.
The author says the change is reshaping how global markets respond to oil.
A dollar that strengthens with oil raises the cost of dollar-denominated commodity imports for emerging-market buyers, especially oil importers. This could dampen their feed and grain purchasing power when oil rises.
ft.comRebecca PattersonOct 16, 2023After 102 past neutral macro events, Crude Oil (WTI) moved a median -0.1% over 5 sessions (49% higher; middle half -3.3% to +2.5%), and +1.8% over 20.
After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
