High government debt plus borrowing to fund data center buildouts are two main factors driving the dollar’s current strength.
The prospect of tariffs and of interest rates staying higher for longer will likely continue to push up the U.S. currency’s value in 2025.
The latest jobs report is unlikely to change the Fed’s mind when they meet Tuesday and Wednesday.
The greenback’s strength has made it tough for U.S. businesses to compete overseas.
Foreign vendors often prefer to be paid in U.S. dollars instead of their local currencies. Others are adding energy surcharges.
Good for U.S. tourists and importers. Bad for exporters and fragile world economies.
Countries that import commodities priced in U.S. dollars, like oil, are paying a lot more. So are nations that have dollar-denominated loans.
A strong dollar means lower prices for goods from abroad. For countries that import commodities priced in dollars, however, it’s bad news.
The president isn't the only one looking for answers.
