DOES THE USD EXCHANGE RATE REALLY AFFECT OIL PRICES?

ALTIN IDRIZI
ARDIAN DURMISHI
NIKOLAY PATONOV

 

Abstract

This paper is intended to study the relationship between the USD exchange rate and the crude oil prices. The empirical analysis uses regression on time-series data to search for a link between these variables. The results are in favour of the predictions of conventional economic wisdom. Negative link is found which means strong dollar leads to cheap crude oil, and vice versa.

 

Key words

US dollar, crude oil, regression analysis

 

JEL Codes: E31; E52.

 

References

Hecht, A. (2015). Why a Strong Dollar is Bearish for Commodities. Online, http://commodities.about.com/od/Macro-Commodity-Topics/fl/Why-a-Strong-Dollar-is-Bearish-for-Commodities.htm

Kowalski, Ch. (2016). How the Dollar Impacts Commodity Prices. Online, http://commodities.about.com/od/researchcommodities/a/How-The-Dollar-Impacts-Commodity-Prices.htm

 

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