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. 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. Europe’s sovereign debt crisis has driven the single European currency to a four-year low.
