Photo from The Daily MailWall Street Journal: Dollar Towers Above Rivals, Posing Fresh Threats to Financial Markets
A strong dollar can hurt earnings, commodities and developing economies.
A prolonged dollar rally is pressuring U.S. corporate earnings, hitting commodity prices and threatening to deepen a selloff in emerging markets.
The U.S. currency has continued to grind higher this year despite an escalating trade fight with China and broadsides from President Trump, who has complained that the dollar’s strength is curbing growth. Last month, the greenback rose even after the Federal Reserve cut interest rates for the first time in a decade, defying expectations that lower rates would cut the appeal of U.S. assets to yield-seeking investors.
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WNU Editor: With major countries now pursuing a negative interest policy .... Why Negative Interest Rates Will Devastate The World Economy. Coupled with no real good places to invest your money. The U.S. dollar is a definite attraction. My prediction. Expect U.S. interest rates to go down further.
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