John Crudele

John Crudele

Business

Why is the dollar falling along with commodities?

Dear John: For years there has been an inverse relationship between the dollar and commodities. One goes up when the other goes down.

However, both the value of the dollar and commodities prices have declined simultaneously recently. Please explain. G.I.

Dear G.I.: Simply put, both the dollar and commodities hꦍave𝐆 been falling because the US economy isn’t healthy.

The reasons commodities decline in a weak economy is simple. Companies need less oil, copper, steel or whatev💖er. With demand down, the price goes down.

The dollar is a little trickier. If a country’s economy is weak, its currency usually suffers. But in the case of the US, the dollar has benefited from being seen as a safe haven against the ills of the rest of the world. So it has💎 been strong even though the economy has been wea🃏k for years.

If the dollar is ꦛweakening, I guess people — especially foreigners — don’t think America is as safe a haven anymore.