The main factor, economists say, is the Federal Reserve’s effort to tame inflation by raising interest rates.
The turmoil in world markets caused by the war in Ukraine is also making dollars attractive to investors seeking a safe haven.
But a robust dollar creates challenges for foreign economies and for American businesses that sell a lot of goods overseas.
It does lower the cost of imported goods, which then forces domestic producers to cut prices — a boon to American shoppers struggling with high inflation.
Source: New York Times