The US dollar has had a hard couple of months, and while there are many theories trying to explain the greenback’s demise, some more preposterous than others, Credit Suisse says it’s very simple: it’s all about oil.
Credit Suisse’s foreign-exchange strategy team says the dollar is getting pummeled due to the rebound in oil prices and the subsequent rebound in currencies of oil exporters, Business Insider reports. “Oil exporter currencies are the main driver of broad USD weakness,” the team wrote in a research note to clients.
And, the dollar is getting crushed. The dollar index is down nearly 7.5% since its peak in mid-January and near its 16-month low.
It's possible that the weak dollar could provide a boost for domestic investments, as real estate and other assets get cheaper in the US. [BI]
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