US Dollar is Winning The Currency War

(27 September, 2022) According to data from the Federal Reserve Bank of St. Louis, since the end of 2021 US dollar appreciated by 10.5% against other currencies. An ultra-hawkish Fed policy and energy crisis and high energy costs pushed the dollar to new highs.

• Japanese yen, Swedish kronor and UK pound depreciated by more than 19% against US dollar since the end of 2021. For the same period Euro depreciated by 13%.
• Strong US dollar makes imported goods and services cheeper for US consumers, partiality compensating the growth of domestic prices.
• For the global economy appreciation of US dollar will have an essential negative impact subduing global trade, causing debt crisis in developing countries and suppressing growth in developed economies as major central banks have to hike policy rates in response to FED's policy.