If the Dollar Bounce back will the prices of oil go down and inflation also go down as well?

Oil has dropped 9%, from 110 to 100, since the Fed disappointed the market and only cut the federal funds rate .75 points. Actual inflation is driven almost entirely by inflation expectations and a stronger dollar does wonders to curb inflation fears. Sounds like Bernanke's finally ahead of the curve.If the Dollar Bounce back will the prices of oil go down and inflation also go down as well?
Most fluctuations in the price of commodities in the market are driven by the perceived political/economic situation some time in the future, so traders 'bet' on the cost.


The high price of oil is driven by uncertainty about supply in many parts of the world. The dollar doesn't seem to be driving the cost but some OPEC members have considered changing the currency of oil to the euro as the see it as more stable or because they feel they will make even more money from that part of the economy.


I don't think the US government would like that at all!If the Dollar Bounce back will the prices of oil go down and inflation also go down as well?
You might get a little more oil for your money for a short while, but the near future plan is to raise oil to $200 per barrel anyway and inflation is going down,


The fed, reserve lowered the interest rates, that is the main indicator of inflation.


Once the dollar bounces back, so will inflation.
No.





Oil is a finite resource.





Its supply is vastly outweighed by its demand.





Therefore, the price of oil will not go down.





Anyway, U.S. oil prices are still way below prices in other countries, but only because of wars to achieve that.