Supercharged Dollar is everyone’s concern

(Bloomberg) – The supercharged dollar is almost everyone's problem – but it's the one challenge that the masters of the global economy can't directly address.

The US currency has soared almost 15% this year, on course for the biggest gain since the early 1980s. Nations across Asia and Latin America have been tapping their foreign reserves in an effort to shore up their currencies. 

The big worry for the rest of the world is that the Federal Reserve's campaign to tame runaway inflation by jacking up US interest rates – a key driver of dollar strength – is nowhere near done yet. That means currency pressures could get even worse, as dollar gains help contain consumer prices in the US while threatening to send them spiraling higher everywhere else.

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