| SMART JOURNAL OF BUSINESS MANAGEMENT STUDIES |
VOL. 5 |
NO. 2 |
PAPER 6 |
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RECENT GLOBAL ECONOMIC TRENDS - OIL PRICES AND ITS BLENDING WITH DOLLAR
VALUE |
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| Rajeswari Krishnan |
| Professor, SNS School of Business, SNS College of Technology, Coimbatore, Tamil Nadu, India |
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| The study investigates the effect of crude oil prices on US Dollar value
and it is found that they have a high negative correlation. Although oil
price in Dollar and Euro show a high positive correlation, analyzing
year-wise standard deviation of oil prices shows that Euro is more
stable than US Dollar in oil trade. Oil prices have a significant
positive influence on the exchange rates of currencies other than
dollar. As far as Indian Rupee is concerned, there is a significant
relationship between crude oil prices in Dollars and Rupee value.
However, the level of influence is low compared to that of Euro, British
Pound and Swiss Franc. |
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