USD has been appreciating since Brexit, coupled with President elect Trump’s promise of tax cut and infrastructure spending. Lately all the fundamental news are positive for America which also allow the USD to appreciate.
Points to ponder
- Strong USD will make exports more Expensive
- Any revenue coming from other parts of the world will be lower due to the exchange rate as well
- Cheaper to import which will hampers the need to lower the deficit
- None US based Companies that issued USD denominated debt bonds will have to pay a higher price.