# The dollar has joined the commodity currency club

> 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.

- Date: 2023-10-16 · published 2023-10-16T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/33536-the-dollar-has-joined-the-commodity-currency-club
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

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.

## Read by commodity

- DXY: bullish ▲
- WTI: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2020-07-27 | [Dollar’s weakness boosts rally in commodities and currencies - Gulf Times](https://feedsoft.ai/events/5318-dollar-s-weakness-boosts-rally-in-commodities-and-currencies-gulf-times.md) | -2.7% | +2.6% |
| WTI | 2023-04-13 | [BIS - The Changing Nexus Between Commodity Prices And The Dollar: Causes And Implications](https://feedsoft.ai/events/36298-bis-the-changing-nexus-between-commodity-prices-and-the-dollar-causes-and.md) | -4.9% | -12.9% |
| WTI | 2023-06-29 | [The Commodities Feed: Hawkish Fed comments weigh on the complex \| articles \| ING THINK](https://feedsoft.ai/events/35414-the-commodities-feed-hawkish-fed-comments-weigh-on-the-complex-articles-ing.md) | +3.2% | +15.2% |
| WTI | 2024-09-19 | [How commodity prices perform following rate cuts: Analysts](https://feedsoft.ai/events/28218-how-commodity-prices-perform-following-rate-cuts-analysts.md) | -1.9% | -1.1% |
| WTI | 2022-08-29 | [Stocks And Bonds Sell Off, While The Dollar Rallies \| Investing.com](https://feedsoft.ai/events/40299-stocks-and-bonds-sell-off-while-the-dollar-rallies-investing-com.md) | -6.7% | -17.6% |
| DXY | 2023-02-28 | [Dollar advances and heaps pressure on commodity currencies](https://feedsoft.ai/events/37239-dollar-advances-and-heaps-pressure-on-commodity-currencies.md) | -0.7% | -0.9% |
| DXY | 2018-04-26 | [The Soaring Dollar Crushes The Commodity Rally \| Gold Eagle](https://feedsoft.ai/events/65438-the-soaring-dollar-crushes-the-commodity-rally-gold-eagle.md) | +0.7% | +2.1% |
| DXY | 2021-06-21 | [Commodity Prices Dip As Dollar Surges \| OilPrice.com](https://feedsoft.ai/events/46491-commodity-prices-dip-as-dollar-surges-oilprice-com.md) | -1.0% | +0.4% |

## Sources

- ft.com: https://www.ft.com/content/07b162c9-1b73-43fd-8c30-9dfcea7e7eb5

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.