{"id":3276,"date":"2022-05-12T02:14:13","date_gmt":"2022-05-12T02:14:13","guid":{"rendered":"https:\/\/griit.org\/?p=3276"},"modified":"2024-01-29T14:20:23","modified_gmt":"2024-01-29T14:20:23","slug":"a-strong-dollar-weak-us-export-competitiveness","status":"publish","type":"post","link":"https:\/\/griit.org\/a-strong-dollar-weak-us-export-competitiveness\/","title":{"rendered":"A Strong US Dollar, Weak US Export Competitiveness"},"content":{"rendered":"\n
Food and gas prices, as well as interest rates, are not the only increases impacting the US economy. The US dollar index, which is the measured value of the US dollar against select foreign currencies, has shown growth rates that it has not seen in 20 years. The stronger dollar does not lead to positive outcomes for companies that export their goods and services internationally. Rather, the increased strength of the dollar means that the costs of US goods and services are more expensive to consumers around the world that may or may not be able to afford the higher prices. As a result, companies that sell globally may see a decline in their ability to compete and a reduction in their profit margins.<\/p>\n\n\n\n
Furthermore, the strong US dollar does not help to narrow the trade deficit. The trade deficit has continued to widen during the first few months of the year. <\/p>\n\n\n\n
US Dollar Index at Highest Point in 20 Years <\/strong><\/p>\n\n\n\n
On May 11, 2022 (2 p.m. ET), the US dollar index closed at 103.92 up from 103.68 the morning prior (9 a.m. ET). Also, this measured value is up from 90.14 a year earlier. Just this year alone, the strength of the US dollar has shown an 8.24% increase from January to May 2022, according to MarketWatch<\/em>. The US dollar index shows the highest numbers in two decades. In May 2002, the index closed at 111.80. <\/p>\n\n\n\n