Is a weak Dollar good for Russia?

By Kenneth Rapoza

The weak dollar leads to higher commodities and that inevitably means higher crude prices and that has some investors bullish on Russia. In the short term, the US dollar and oil have been highly correlated. However if this were to break down, the path of oil price is more important to Russia than the level of the US dollar.

Yet, while a weak dollar means higher oil prices, higher oil prices also means more dollars and euros flooding Russia to import oil and gas. That means a stronger rouble.

Read more on http://blogs.forbes.com/

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