With a delayed negative reaction, Brazilian stock market swooned yesterday. Japan and Asia, in general, benefit from low oil prices as they are such big importers. That could partly explain Mideast selling of dollars all of a sudden. They know the oil situation is bleak and that Japan will benefit from that. The other part of the explanation is that the Arabs are already being clobbered by low oil prices.
Oil is priced in dollars.
If the dollar dives too, it is a double whammy. With the eruo coming on stream, it makes sense for them to diversify by buying the euro, as well as some yen. Maybe even price their oil some day in euros as well as dollars. The surprise European rate cuts are bullish for the future price of gold of course. In addition to the public reason given for the slashing of interest rates across Europe, we understand much of it had to do with them trying to keep the dollar stable.