The Rising Dollar Is Wreaking Havoc With US Trade
A strong currency may be in America’s national interests over the long term, but right now the hit to exports is a concern.
The US currency is flying high these days.
Photographer: Abid Katib/Getty Images
In 1995, Treasury Secretary Robert Rubin asserted that a strong dollar is in the US national interest, a mantra repeated by each of his successors. They’re partially correct since the effects of the robust buck, which has soared this year, help some while harming others.
The rising greenback makes US imports cheaper, favoring American consumers. Ditto for US businesses that import manufactured goods and services, important offsets to surging domestic inflation. Commodities are the exception. Of my list of 45 that are traded internationally, 42 are priced in dollars, including crude oil and other hydrocarbons; corn, wheat, soybeans and other agricultural products; base metals such as lead, zinc, copper and aluminum; and gold, platinum and silver. The three exceptions are palm oil, priced in Malaysia ringgit, wool traded in Australian dollars and amber priced in Russian rubles.