This article explains public financial information. It does not recommend buying, selling or holding any investment.
Dollar strength is relative
A currency strengthens against another currency or basket.
State the index, exchange rate and period rather than saying simply that the dollar is up.
Translation affects multinational reporting
Foreign revenue converts into fewer dollars when foreign currencies weaken. Foreign costs can offset part of that effect.
Read constant-currency reconciliations and hedging disclosures.
Imports and exports respond differently
A stronger dollar can cheapen imports in dollar terms and make exports costlier for foreign buyers.
Contracts, pricing, tariffs and supply constraints change pass-through.
Dollar debt can tighten conditions
Borrowers earning local currency but owing dollars face a heavier burden when local currency weakens.
Matched dollar income, reserves and hedging reduce exposure.
Commodity correlations are not rules
Many commodities are dollar-priced, affecting affordability for non-dollar buyers.
Supply disruptions and inventories can dominate the currency relationship.
Frequently asked questions
What is a strong dollar?
Dollar appreciation against a specified currency or basket.
Does it hurt every US company?
No.
Why affect emerging markets?
Dollar debt can become harder to service.
Does it always lower gold or oil?
No.
Official sources
Definitions and methodology were checked against these primary resources. Consult the current documents for complete details.
Federal Reserve — Foreign Exchange Rates ↗EIA — Crude Oil and Financial Markets ↗
