May 20 (Bloomberg) -- Oil prices are diverging from the dollar by the most in three months as investors dump commodities for the safety of the U.S. currency.
Crude’s 30-day correlation to the dollar is minus 0.94, as the two move in opposite directions 94 percent of the time, the highest level since February, according to data compiled by Bloomberg. A correlation of minus 1 would mean the two always move inversely.
The correlation was positive until three weeks ago as signs of a global economic recovery boosted both the dollar and oil amid expectations for an increase in fuel demand. Since then Europe’s sovereign debt crisis drove the single European currency to a four-year low against the greenback and crude dropped 22 percent.
Crude’s 30-day correlation to the dollar is minus 0.94, as the two move in opposite directions 94 percent of the time, the highest level since February, according to data compiled by Bloomberg. A correlation of minus 1 would mean the two always move inversely.
The correlation was positive until three weeks ago as signs of a global economic recovery boosted both the dollar and oil amid expectations for an increase in fuel demand. Since then Europe’s sovereign debt crisis drove the single European currency to a four-year low against the greenback and crude dropped 22 percent.