As we track the market, one of the things that we can consider about the US Dollar, is the price of oil. Take a look at the chart below to see the correlation between oil and the dollar. The first chart is of US Oil Futures. Notice the drop in oil. After reaching a high for the year, in June of last year, prices have continually dropped. The last few days have shown a considerable increase in oil.
Now take a look at the US dollar index, equally weighted against the Euro, Pound, Yen, and Aussie. The dollar really began strengthening in July, shortly after oil peaked. Notice in October, the dollar flattened. This is the same time oil prices steadied. The dollar has also weakened the last few days as oil has climbed. Certainly the US Dollar has benefited from the declining oil prices.
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