Dollar exchange rate with major currencies and crude oil prices today, 10 July

Economies around the globe are being battered by a tempest of rising prices driven by several factors. One of the major sources of the current high inflation though is the high cost of oil and gas. After a glut of supply and near zero demand during the depths of the covid-19 pandemic the pendulum has swung to the other extreme.

This has been exacerbated by the Russian invasion of Ukraine and Western nations imposing strict sanctions on the aggressor which sent prices spiking. Oil has come down somewhat from highs set in March but plans by OPEC+ to stick with scheduled production quotas mean that prices are unlikely to go below $100 per barrel anytime soon.

Inflation and fears of looming recessions in major economies around the world have investors seeking out safe investments to ride out the storm. To tamp down the former the Federal Reserve has begun to raise interest rates even if it pushes the economy into the latter.

But this has the knock-on effect that investing in greenbacks is even more attractive causing the US dollar to surge against other world currencies. The pound recently hit a two-year low against the US dollar and the euro almost fell to parity with the greenback for the first time in twenty years.

Expectations are that the European common currency will fall behind the US dollar in August. That’s good news for those who plan to travel across the pond this summer, if they can find a reasonably priced flight. The price of airfare has jumped a whopping 38 percent from last year on the back of strong demand and high crude prices.

Those that choose to take to the road instead will have to contend with stubbornly high gas prices. Drivers in the United States are beginning to see some relief as the price of gasoline retreats from record highs after topping $5 per gallon on average nationally.

Californians, which pay the highest gas prices of over $6 on average across the state, may be getting an inflation relief check for potentially up to $1,050. The Golden State is just one of several states that are taking measures, either through direct payments or dropping gas taxes, to buffer their residents in these trying times.

Here’s a look at how much a dollar is worth and what oil is selling for these days.

US dollar exchange rates

The last time the euro and dollar were valued the same was twenty years ago when the 12 countries that formed the eurozone swapped out their own national currencies for the common European banknotes and coins.

Crude oil prices

Sanctions on Russian oil exports after Vladimir Putin ordered the invasion of Ukraine sent rising crude oil prices skyrocketing. In March Brent crude peak at just below $135 and West Texas Intermediate (WTI) came close to $124.

The price has come down since with President Biden announcing the release of one million barrels of oil a day for six months from the US strategic reserve along with other nations promising to put an additional 60 million barrels on the market. Covid lockdowns in China created a temporary drop in demand which also helped to cool prices. Here’s where the price sat at the close of markets on Friday 8 July.