Because many commodities are denominated in dollars, which means that its price is given in dollars, investors should monitor certain commodity markets, to get an idea of where the dollar goes. For example, the rising price of oil has resulted generally in a weaker dollar because the purchasing power of this suffering and consumers get less gasoline for their cars and oil to heat their homes when the price oil increases. To avoid dealing against a falling dollar if commodities are rising (Bull Market), you should direct attention to the currency based on commodities such as Australian and Canadian dollars. When precious metals like gold, have a high demand, the Australian dollar tends to benefit. Similarly, the Canadian dollar rises when oil demand increases.

A more recent example of a commodity currency is the Brazilian real. Brazil, which previously was an emerging market in 2009 stands as the tenth largest economy in the world and has a wealth of natural resources, particularly oil.