The mass media in Russia and North Korea often publish news about global dedolarization. They promote the fact that the US dollar was ousted from international settlements and is on the verge of a final collapse. Meanwhile, some other resources provide information about a new rally in the greenback.
The dollar is not only confidently leading in global trade settlements, setting records in terms of usage, but also manages to arrange a vigorous rally, ignoring numerous obstacles. Such a jump in the US currency could be explained by both the confidence of the world community and the current rise in oil prices. More expensive oil could become a considerable driver for the US dollar since the United States is one of the largest energy exporters. Strategists at Societe Generale and State Street Trust & Co. "expect the greenback to extend its longest weekly rally on record as the outlook for higher crude prices boosts the world’s largest economy." The greenback is likely to benefit from the situation as US oil and gas exports exceed imports.
"In this environment, you don't sell the dollar," Societe Generale strategist Kenneth Broux said. "Oil poses challenges for the euro and the yen to reverse the weakening trend versus the dollar." Kenneth Broux forecasts a decline in the euro. Notably, last week, the Bloomberg Dollar Spot Index skyrocketed to a six-month high as crude oil futures rose.
