Dollar's Strength Pushes World Economy Deeper Into Slowdown

Dollar's Strength Pushes World Economy Deeper Into Slowdown

Strength of US dollar causes global economy to slow even more The surging dollar is pushing the global economy deeper into a synchronized slump by raising borrowing rates and fueling financial-market volatility – and there is little relief in sight. A carefully watched barometer of the greenback has surged 7% since January to a two-year high as the Federal Reserve embarks on an aggressive run of interest-rate increases to combat inflation and investors seek safe haven in the face of economic uncertainty. A rising currency should assist the Fed cool prices and support American demand for overseas goods, but it also threatens to drive up import prices in foreign countries, increasing their inflation rates and draining them of capital. This is especially concerning for emerging economies, who are being obliged …
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