In the short term, the impact of US dollar interest rate hike on commodity prices is declining. After the US dollar raises interest rates, investors are more willing to put their money in the bank to get more interest income. Therefore, the currency circulating in the US market decreases, the US dollar appreciates, and commodity prices naturally fall. But in the medium and long term, it is not necessarily because supply and demand determine prices, and there are many influences such as international forms and political factors.

What does the falling dollar index mean?

The decline of the US dollar index is actually the depreciation of the US dollar. The dollar index fell, the exchange rate of other countries against the dollar rose, the ratio fell, the dollar depreciated, and commodity prices rose, because the dollar is one of the important currencies for trading and settlement in the world market.