Soaring U.S. Dollar Spreads Pain Worldwide

As the value of the U.S. dollar soars, other currencies around the world are sinking by comparison. This is contributing to skyrocketing prices for everyday goods and services and compounding financial distress, especially in poor countries. The reasons for the dollar’s rise are no mystery. To combat U.S. inflation, the Federal Reserve has raised its benchmark short-term interest rate five times this year. That has led to higher rates on a wide range of U.S. government and corporate bonds, luring investors and driving up the U.S. currency. The dollar is up 18% this year against a basket of key currencies around the globe.