The dollar is OP
Blame inflation and recession fears.
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• less than 3 min read
Just like your opponent in Super Smash, the dollar is OP. The US Dollar Index, which compares its value to six other foreign currencies, hit a 20-year high last week.
The demand for greenbacks is up for two reasons:
- Inflation. When things cost more, it takes more dollars to buy stuff (duh).
- Recession fears. Even with inflation hitting the dollar’s spending power, investors are hedging against a recession by holding more cash.
What does a strong dollar mean for you? If you have a stash of cash in other currencies, it could be worth less in the US, so you may want to wait to exchange it. It could also negatively impact your investments in multinational corporations. On the other hand, now’s the time for that trip to Europe.—Myriam
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