The dollar has soared as the Federal Reserve has raised rates. U.S. Treasury yields now provide the best return over expected inflation in more than a decade, incentivizing investors to buy dollars to invest in the bonds. Global uncertainties add to the appeal of U.S. assets. As a result, the U.S Dollar Index, which tracks the greenback against a basket of currencies, is up over 18% for 2022—hitting some 23 multidecade highs this year, says Dow Jones Market Data.
One downside: A robust buck erodes overseas revenue for U.S. companies. Analysts’ consensus forecast for 2023
S&P 500
earnings per share from
FactSet
has fallen 4% in three months. Blame weak economic growth and the dollar.
Source: https://www.barrons.com/articles/a-strong-dollar-spells-trouble-for-some-u-s-companies-51664586529?siteid=yhoof2&yptr=yahoo