A strong dollar has worsened today’s oil shock for importers
Crude is dearer than its 2008 peak of $147.50 in local currencies
Just over 50 years ago, at a meeting of the world’s top economic powers, US Treasury Secretary John Connally shocked his counterparts from other countries by proclaiming the dollar “is our currency, but it’s your problem." Back then, America wanted a cheaper currency, forcing others to revalue theirs. Half a century later, the global economy faces the opposite challenge: The American greenback is hovering at a 20-year high against its fellow major currencies, creating a huge problem for everyone outside America buying dollar-denominated goods, like crude oil. And no commodity is more important than crude oil.