US dollar hits 18-month high
The US dollar has reached its highest level in 18 months, creating a new challenge for President Donald Trump's goals of boosting exports and reducing the trade deficit.
The dollar's strengthening in global markets is seen as a development that could undermine the price competitiveness of American products in international markets.
According to a Reuters analysis published on October 17, the relatively strong outlook for the US economy and ongoing global uncertainty are supporting demand for the dollar. Meanwhile, elevated energy costs, inflation, and trade tariffs are putting pressure on the purchasing power of American households.
A strong dollar is considered a significant obstacle to the Trump administration's policies aimed at bringing manufacturing back to the United States and narrowing the trade deficit. Further appreciation of the dollar could weaken the competitiveness of US exporters while increasing pressure on the administration's economic policies.
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