The dollar has been inversely correlated with oil for many months, and as 2008 draws to its sad close we are seeing the renewal of a correlation with the stock market.

The powerful linkage between the S&P 500 and the dollar seems to have started in August and September. Forex analysts say as the Dow and S&P fall, risk aversion rises, which accounts for the U.S. three-month T-bill yielding a measly 0.1 percent and the dollar remaining popular as the safe-haven currency.

But as risk aversion fades on good news, such as the Citigroup bailout and President-elect Barack Obama naming his economic team, the stock market rallies and the dollar drops.