The strained relationship between the United States and China may overshadow the financial headings. But the growing US dollar has the ability to damage big American companies even more than a trade war could.
The US Dollar Index, which measures the worth of the greenback against a basket of other leading international currencies such as the euro, yen and British pound, has increased about 5% this year and is not far away from its 52-week high.
The dollar is so strong because of the strong US economy along with a weakened global economy and the Federal Reserve’s interest rate hikes. A country’s currency inclines to go up in tandem with rates.
A strong dollar is very bad news for businesses and companies that do a lot of international business since it damages the significance of their international sales and profits.
It can also hurt huge US corporations at home because American residents have more purchasing power and may end up buying goods from overseas.
Numerous blue-chip consumer companies, including Hasbro, Harley-Davidson, Huggies maker Kimberly-Clark and Gillette owner Procter & Gamble have cautioned that the dollar is affecting their results negatively.
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23 July, 2019