How a strong US dollar hampers the inflation fight

The strong US dollar increases prices all around the world. (Image: Depositphotos)

Wed, 27 Jul 2022

With fears of a global recession mounting, many investors are choosing to park their money in a safe place.As a result, the value of the US dollar against many of the world's currencies, including New Zealand's, has climbed to levels last seen during the global financial crisis (GFC) and briefly at the onset of the covid pandemic.One NZ dollar buys about 63 US cents at the time of writing – it has been as low as 61 cents in recent weeks – down from 70 cents a year ago.That means it now costs about 12% more to buy a US dollar...

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