Economics
Dollar’s Strength Pushes World Economy Deeper Into Slowdown
- Fed rate hikes and strong dollar are hurting global growth
- Emerging economies are especially vulnerable as capital leaves
Photographer: Andrew Harrer/Bloomberg
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The soaring dollar is propelling the global economy deeper into a synchronized slowdown by driving up borrowing costs and stoking financial-market volatility -- and there’s little respite on the horizon.
A closely watched gauge of the greenback has risen 7% since January to a two-year high as the Federal Reserve embarks on an aggressive series of interest-rate increases to curb inflation and investors have bought dollars as a haven amid economic uncertainty.