Strongest dollar in a generation upends global economy, devalues currencies

The greenback is affecting everything from cost of an overseas vacation to profitability of MNCs

The dollar lubricates the global economy. It is one side of about 90 per cent of all foreign exchange transactions, accounting for $6 trillion in activity every day before the pandemic, from tourists using their credit cards to companies making major international investments.

As the world’s most important currency, the dollar often rises in times of turmoil, in part because investors consider it to be relatively safe and stable. The dollar has gained in recent months as inflation has soared, interest rates have increased and the worries over growth have worsened. “That’s a pretty tough mix,” said Kamakshya Trivedi, the co-head