The US dollar index hit a 20-year high of 109 this week.
This is creating increasing pain for other countries, especially those with Eurodollar loans, as servicing those is becoming more expensive — at the same time that import costs are rising.
Multinational companies are also feeling the squeeze, as their overseas revenue declines due to weakening demand and increasingly unfavorable exchange rates.
Somewhat ironically, this is happening at the same time when US inflation, as measured by the Consumer Price Index, is spiking to a 41-year high of 9.1%.
Financial advisor Lance Roberts doesn’t see much reason for the dollar strength to abate anytime soon.
So what will be the most likely repercussions from this?
For everything that mattered to markets this week, watch this week’s Market Recap featuring Lance Roberts.