We’ve been hearing a ton about plunging oil prices. We’ve also heard a lot about falling gold prices.
However, we almost always report about those price moves relative to the dollar.
For countries that don’t use the dollar, the commodity price story is very different when their local currencies make big moves against the dollar.
As you can see in the upper left chart, the price of oil has plunge for most major countries. However, relative to the Russian ruble, it’s gone sideways. That’s because the ruble has been collapsing along with oil.
These complicated dynamics are very important to consider as these commodities go into everything.
The charts below come from Morgan Stanley’s Adam Longson.