Rising US Dollar Hampering Commodity Prices

Reflecting a downfall in global equity markets, commodities are also reeling under the bear grip with rise in the power of US dollar index

"The strong dollar has hit a multi-decade high as US policymakers rejected the idea that there should be a concerted global effort to rein in the US currency, which is mostly to blame for the significant decline in commodity prices."  

Commodities have been suffering due to the USD’s continuous rise and tightening monetary policy. Commodity prices have prolonged the slide from the highs of 2022 and are expected to decline in October and continue through the current quarter. The strong dollar has hit a multi-decade high and has continued to rise as US’ policymakers rejected the idea that there should be a concerted global effort to rein in the US currency, which is mostly to blame for the significant decline in commodities prices.