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Strong Dollar Soars as Europe and China Falter

  • The US dollar is at its highest level in 6 months, boosted by positive economic data and expectations of higher interest rates.

  • Meanwhile, China and Europe face economic troubles, with slowing growth, falling consumer prices, and waning exports.

  • The euro has dropped 4.4% against the dollar since mid-July as Europe heads towards possible stagflation.

  • China has cut interest rates to boost lending and demand, but its currency has hit a 16-year low against the dollar.

  • The dollar's strength gives the Fed room to keep rates high to fight inflation, while the ECB has little scope to continue hiking rates.

cnn.com
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