With a devaluation you get boosted exports and reduced imports. Yet USA doesn't risk higher oil invoices (as happens in other countries with devaluated currencies). A win-win situation?
If you haven't noticed oil has been rising generally as the dollar has been devalued. Why would you expect that to not be the case in the future?
Excellent Commentary ................................................................................... The main issue that you bring to mind is the fact that most US citizens are asleep when it comes to having to deal with several currencies... The currency itself sometimes changes the reasoning of buying items at specific price levels , in that the combination of the asset in question , and the currency in question comes to a value that must be interpreted as a singular price... relative to the currency of that geographic region....obviously this has always been the risk in the import export business... As globalization progresses...also the currency in which the items trade will tend to consolidate... What is precarious about this situation is that the problems of the various countries who are under the guise of separation today...will be under the guise of togetherness tomorrow... Now...with the advent of the internet...citizens of all nationalities will be given more flexibility more more individual choices...and in fact this should be a growth area for the banking business. At the moment there are a few well known names that are going in this direction, but they are very expensive as compared to dealing directly with other foreign or central banks....Just like the brokerage commision business has consolidated, the currency banking business will become more efficient as well...
oil and gold, as well as many other commods quoted in dollars, will in general rise when the dollar falls, all other things being equal.
The price of a barrel of oil has gone up more in dollar terms than in euros, even though oil is traded in dollars. The reason is simple; the supply of dollars increases faster than the supply of oil and euros.