The study investigates the effect of crude oil prices on US Dollar value and it is found that they have a high negative correlation. Although oil price in Dollar and Euro show a high positive correlation, analyzing year-wise standard deviation of oil prices shows that Euro is more stable than US Dollar in oil trade. Oil prices have a significant positive influence on the exchange rates of currencies other than dollar. As far as Indian Rupee is concerned, there is a significant relationship between crude oil prices in Dollars and Rupee value. However, the level of influence is low compared to that of Euro, British Pound and Swiss Franc.
