U.S. Dollar Hits Two Decade High
As a result of Federal Reserve Chairman Jerome Powell's remarks that the institution will continue to combat inflation "forcefully,
The Dollar Index, which compares the value of the dollar to a basket of six other major currencies, increased more than 0.6% early on Monday befo
re falling to 109.22 points.
Although the index temporarily reached 109 in July of this year, Monday's peak was t
he highest since 2002.
Investment company LPL stated earlier this month that the Federal Reserve's efforts
to raise rates would be "bullish for the US dollar."
According to the LPL report, around 30% of the income generated by S&P 500 businesses comes from markets outside of the United States
One significant benefit of a higher currency is that as imports of goods and services become more affordable
it may help reduce inflation. The U.S. has a trade deficit of $79.6 billion because it imports more than it exports