The world is at war — a currency war — and the U.S. is suffering loses. As countries around the world take efforts to weaken their currencies the strength of the U.S. dollar is rising. While, this may seem positive at face value a strong U.S. dollar can have some unfortunate consequences.
A strong dollar can have a negative impact on international investment returns and can also seriously affect the earnings of U.S. companies with large foreign operations and exports. Dr. David Kelly, Chief Global Strategist, J.P. Morgan Funds explains that, “a higher dollar cuts the dollar value of international revenues, and is a drag on earnings.”
For further information on the currency war taking place across the globe check out the video below.