The dollar is up but that's not good news for everyone

The dollar truly is almighty right now.

It reached a two-decade high on the US Dollar Index this week. The greenback is seeing a boost thanks to Federal Reserve interest rate hikes, and global investors and companies turning to the safety of dollar reserves in the face of uncertainty.

And the dollar’s strength is creating both economic winners and losers.

Here’s a quick look at who the strong dollar is helping, and who it’s hurting.

• Helping: Importers buying foreign goods with dollars are getting a great deal for their money right now, helping some companies blunt the impact of inflation.
• Hurting: On the other side of that coin, exporters producing goods in USD are eating their hats as American-made goods get more expensive abroad, limiting international sales.
• Helping: American tourists: A dollar this strong buys a lot more of a good time than it used to outside the US.
• Hurting: The bottom line for companies with significant international sales. Some companies are expecting significant revenue and profit dents from a strong dollar over the next few quarters.
• Helping: American consumers, hit hard by inflation, have more purchasing power as a dollar stretches a little further.
• Hurting: People in emerging markets trying to buy food and fuel, or pay debt. The strong dollar, combined with pressures from the Russian invasion of Ukraine, is increasing the price of staples the world over, threatening a global economic crisis.—DA