This is an incredibly positive indication for us in the US. The dollar is
holding its value better than the European and Asian currencies.
A lot of you had asked me over the months why I find the economic metrics around a dollar important. Let us be honest, to say the least, I will get more for the same dollar when I travel to India this summer. ….:) 🙂 :). Seriously, As much as we in America have been complaining about raising groceries prices, we have to realize that consumers outside the US are paying much higher than they ever paid before compared to the extra we are
paying in the US. This is because of the strong of the US dollar.
About 60% of the world’s foreign exchange reserves. are held in a dollar. This is how
countries of the world hold their money. They save it in dollars more than their own local currencies. Some of you thought it was Gold. While some countries hold it in Gold, Majority hold in the US dollar. The value of the dollar is collateralized( You can say “Backed”)by strength of the US economy. If the dollar is holding its value, then it means that the world still trusts the US economy as strong and dependable unit. A strong dollar keeps countries
wanting to own more dollars and use them to do international trade. This gives the
US immense global power and ability to control global markets