We’ve been as high as $98.52 and trade now at $98.33.
Higher oil prices generate more reserves for Middle Eastern central banks and more reserve means more reserve diversification….Makes it difficult for the dollar to rally in that environment…
There is also a clear difference of philosophy between the ECB and Fed on commodity-price based rises in prices. The ECB is not afraid to hike when oil surges. The Fed is much more circumspect, believing the oil price hike a drag on the overall economy that will self-correct (as it did in spectacular fashion in 2008, with a little help from the global financial crisis.)
