Oil and US dollar exchange rate dependence: A detrended cross-correlation approach

A-Tier
Journal: Energy Economics
Year: 2014
Volume: 42
Issue: C
Pages: 132-139

Authors (3)

Reboredo, Juan Carlos (Universidade de Santiago de Co...) Rivera-Castro, Miguel A. (not in RePEc) Zebende, Gilney F. (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper examines the relationship between oil prices and the US dollar exchange rate using detrended cross-correlation analysis. For a wide set of currencies in the periods before and since the onset of the recent global financial crisis, we characterized the oil price–exchange rate relationship at different time scales and documented two main findings. First, the cross-correlation analysis indicated that oil price–exchange rate correlations were negative and low, having in general lower values for longer time scales. Second, negative dependence between oil and the US dollar increased after the onset of the global financial crisis for all time scales, thereby providing evidence of both contagion and interdependence. This empirical evidence has important implications for monetary and fiscal policies, asset management and risk assessment.

Technical Details

RePEc Handle
repec:eee:eneeco:v:42:y:2014:i:c:p:132-139
Journal Field
Energy
Author Count
3
Added to Database
2026-01-29