Swine Flu Strengthens US Dollar and Lowers Oil Prices

Approximately 103 people have died in Mexico from the swine flu, and the World Health Organization (WHO) is calling it a “public health emergency of international concern.”

The first case of swine flu in Europe has been diagnosed in Spain, and the number of people dying and being admitted to hospitals from swine flu grows 25 percent each day.  Officials fear that between 15% and 50% of the population might contract the illness, and the Daily Mail considers how the swine flu is a bigger threat to humanity than nuclear warfare.
One surprising consequence of the swine flu outbreak is its effect on the value of the US dollar and the price of crude oil. According to CNNMoney.com:

The price of oil fell more than 5% Monday morning as concerns about the potential economic repercussions of a swine flu pandemic weighed on the stock market and lifted the U.S. dollar.

Over concerns about a possible swine flu pandemic, oil futures have declined to below $50 a barrel. In addition, fear over a worldwide outbreak has caused investors to be more cautious and seek the US dollar for refuge.  The dollar had gained 0.8% over the euro as a result of swine flu concerns.  The stronger dollar has also contributed to the lowering of crude oil prices, which cost $100 more per barrel at this time last year.

Could the swine flu actually be good for the US economy?

Image:  Laurel Fan on Flickr under a Creative Commons License

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