During the Nixon administration, Treasury secretary John Connally famously told a group of central bankers that while the dollar may be the currency of the United States, its strength or weakness is their problem to deal with. This statement still holds true today, as the strong dollar is causing some issues abroad but has not had a significant impact on the US economy.
Currently, the Bloomberg Dollar Spot Index is close to its highest level in five months, following substantial gains against major currencies such as the South Korean won, the Japanese yen, and the Swiss franc in recent months. This increase in dollar strength has led South Korean Finance Minister Choi Sang-mok and Japanese Finance Minister Shunichi Suzuki to express their concerns about its impact.
However, unlike in the past, the current strength of the dollar is not necessarily a cause for alarm on a national or global level. While it may present challenges for some countries, the overall impact on the US economy and the global economy is minimal. The strong dollar is a reflection of the relative strength of the US economy compared to other nations and is not necessarily a negative development.