ETFs To Benefit & Lose From A Strengthening Dollar
Zacks Investment Research | Nov 12, 2018 10:10PM ET
The U.S. dollar is on fire once again, with the dollar index rising to a 16-month high against the basket of other currencies. The surge was driven by political malaise in Europe, especially growing uncertainty over a smooth Brexit deal and concerns over Italy's budget that has led to the decline in euro and sterling.
The appreciation in the greenback is further supported by the Federal Reserve’s latest FOMC meeting as well as an upbeat economy. The central bank reaffirmed its plan to raise interest rates for the fourth time this year as soon as next month and a potential for two more hikes by mid-2019. Meanwhile, the American economy looks exceptionally solid with robust job creation, strong GDP growth, a 50-year low unemployment rate, fastest pace of wage gains in nearly a decade, and rising consumer and business confidence (read: Zacks Investment Research
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