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Dollar Pain Spreads From Emerging to Developed Economies

  • Greenback strength is pushing rival currencies lower
  • Weaker currencies help to push up import prices and inflation
Bloomberg business news
WATCH: How high can the dollar go?Source: Bloomberg
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Developed economies are taking a hit from the dollar’s appreciation to multi-decade highs in ways that were once more familiar to their emerging market peers.

Fueled by the Federal Reserve’s most aggressive tightening cycle in more than a generation, the stronger greenback is pushing rival currencies lower, driving up the cost of imported goods, constricting financial conditions and feeding inflation in other economies.