Undervalued U.S. dollar leads to lower non-perishable commodity prices.
The value of the U.S. dollar affects non-perishable commodity prices. When the dollar is undervalued, commodity prices go down. But when it's overvalued, there's no impact on prices. This happens because people expect an undervalued dollar to get stronger, so commodity exporters increase supply. This study used a model to show this relationship between the U.S. dollar and commodity prices.