SMART JOURNAL OF BUSINESS MANAGEMENT STUDIES VOL. 5 NO. 2 PAPER 6
 
RECENT GLOBAL ECONOMIC TRENDS - OIL PRICES AND ITS BLENDING WITH DOLLAR VALUE
 
Rajeswari Krishnan
Professor, SNS School of Business, SNS College of Technology, Coimbatore, Tamil Nadu, India
 
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.
 
KEYWORDS: Global Economic Trends, Exchange Rates, Correlation JEL CLASSIFICATIONS: D51, F31, G15 FULL TEXT