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Short-Term Forex Prices Don’t Impact Crude Oil

Financial media typically reports that there is an inverse relationship between the U.S. dollar and the price of crude oil, with the currency as the driver of the commodity.

Financial media typically reports that there is an inverse relationship between the U.S. dollar and the price of crude oil, with the currency as the driver of the commodity. A study by Homer Bonitsis of the New Jersey Institute of Technology and Farahmand Rezvani of Montclair University shows empirical evidence that in contrast to popular perception, there is no short-term U.S. dollar impact on the price of crude oil, only long-term. Bonitsis tells TheStreet’s Jill Malandrino longer-term, he expects the U.S. dollar to appreciate, which will have a dampening effect on crude.

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