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A weak dollar makes commodities more attractive to foreign investors.
A strong dollar makes commodities and shares of the companies that produce them less attractive to foreign buyers.
A strong dollar makes commodities priced in dollars, like gold and oil, more expensive for foreign investors, pressuring shares of energy and basic materials companies.
The government of India is so sure that speculation makes commodities dearer that it has banned the trading of futures contracts for some of them (although not oil).
It also makes commodities denominated in US dollars more expensive for Chinese buyers, which could hurt demand and thus further depress commodity prices.
A dearer US currency makes commodities more expensive for dollar holders, helping to undermine the sector, while investors are also unsetteld by some mixed signals from China.
Similar(49)
His father retired as the owner of Comhedge Partnership, a Singapore company that makes commodity-trading software.
That can make commodities especially useful in making a portfolio less volatile.
Not only has this pushed prices up further, but it has made commodities more volatile.
A rise in the dollar against other major currencies also made commodities less expensive.
Our ancestors began to make commodities and conveniences — things they hadn't wanted before but could not do without now.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com