| The collapse in global commodity prices last year was primarily driven by a surging US dollar, not an economic slowdown in China, a study by the Federal Reserve Bank of New York has concluded.
The surprise finding challenges the conventional view that China's tempering demand for commodities such as oil, industrial metals and some agricultural products, drove the swoon in commodity prices. A regression analysis over the past 25 years by New York Fed economists shows that a 1 per cent increase in the US dollar index corresponds to a 0.9 per cent drop in the commodity price index...............................................Full Article: Source
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