Strong Dollar Pressures U.S. Manufacturing Rebound

10/09/2022

The dollar has been strengthening recently but this could cause some trouble for U.S. manufacturing since all products from the U.S. are more expensive to other countries. This is because the dollar is so high compared to other currencies around the world. Foreign companies are gaining a price advantage because their goods have become cheaper to people with U.S. dollars due to the stronger dollar. The stronger dollar is making imports cheaper but exports more expensive for the U.S. However, some say that the period of the strong dollar will end soon because the U.S. had a high trade deficit of 1.1 trillion in the first half of 2022 compared to 790 billion during 'the same period in 2021'. This will make the dollar unattractive to investors. As inflation slows, interest rates should fall again which will also help decrease the value of the dollar to a more normal level. 

https://www.wsj.com/articles/strong-dollar-pressures-u-s-manufacturing-rebound-11665307981?mod=hp_lead_pos1 

Gabriel Ham