Interest Rates: Dollar and u.s

interest rates: An index that tracks the dollar against other major currencies reached a 14-year high after the election before dipping a bit since then, according to The Japan Times. In part, the dollar's gain reflects the U.S. economy's strength and investor confidence that Trump will accelerate growth by slashing taxes and pumping money into roads, bridges and other infrastructure. Since the Nov. 8 election, the dollar has shot up 5 percent. The dollar could rise even more now that the Federal Reserve has raised interest rates and foresees three more hikes next year. Which creates a problem An expensive dollar makes U.S. goods costlier overseas and imports cheaper in the U.S. That's a recipe for more pain for American manufacturers. With rates far lower elsewhere in the world, many investors will shift money to the United States to capitalize on higher yields a shift that could send the dollar even higher. (news.financializer.com). As reported in the news.