Five Ways That the Super-strong US Dollar Could Hurt the World economy

Kon How
2022-09-08

1. Even more inflation

2. Low-income countries under threat

3. A bigger US trade deficit

4. De-globalisation to get worse

5. Eurozone fears

Will the dollar keep rising?

• Because the dollar now offers a higher yield when deposited in a US bank, it encourages foreign investors to sell their local currency and buy US dollars.

• US dollar is because it is a classic safe haven when the world is worried about a recession

When most currencies weaken against the US dollar, meaning countries will have to pay more for the imports that are priced in USD, inflation therefore eats into their economy.

Technically, the U.S. should experience tame inflation with a strong dollar, but that is not happening and their inflation hits 40 years high, with CPI staying above 7.91% since February.

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Modified in.2022-10-14
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Comments

  • CIK
    2022-09-08
    CIK
    yes you are correct
  • Huat1333
    2022-09-08
    Huat1333

    Every ways also " hurts " , depend where " THEY " want markets to move . [What] [What] 

  • SandDust
    2022-09-08
    SandDust
    My dollar your problem [Cool]
  • Tiger Rookie
    2022-09-08
    Tiger Rookie
    Thanks for the insightful sharing 😊
  • Wizzy
    2022-09-08
    Wizzy
    nice
  • noob80
    2022-09-08
    noob80
    ok
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