Bloomberg Surveillance · Friday, August 28, 2026
Katie Kaminski explained the inverse relationship between the U.S. dollar and commodity prices, stating that a strengthening dollar makes commodities more expensive and less attractive. Conversely, a weakening dollar makes commodities more affordable and can stimulate demand, a phenomenon also observed in oil pricing.
“Oh, it has a huge impact.”
“And actually, we saw, if you remember in June, the dollar was strengthening quite a bit. That has a very negative impact on commodity prices because as the dollar strengthens, you see that the price relative of these commodities goes up and makes it, you know, more disadvantageous for people to buy them.”
“So in June, we saw the dollar strong. That caused a sell-off in many commodities. As the dollar weakens, it actually makes those commodities more attractive.”