The strength of the dollar is not systemically linked to the price of oil, new research from the European Central Bank shows.
The author, Martino Riticci, says that despite the US having become a net exporter of crude over the past decade, oil supply shocks do not strengthen the country’s terms of trade or affect the currency’s real effective exchange rate.
This makes it different from the Norwegian krone or the Australian dollar, which are “commodity currencies” that clearly appreciate following
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