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Markets
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

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.