This article reports on the rising value of the US dollar against other Asian currencies in the past one week. This rise, as reported in the article, explains the increased US retail sales that were reported in November, 2014(Yen saudigazette.com.sa). Strong dollar has strengthened the US consumer’s purchasing power which is a sign of a growing economy. Hence, increased consumer spending proves that US has fully recovered from the depression; thus, the country’s central bank is in position to consider raising the interest rates.
“For Global Debtors, Strong Dollar Is a $10 Trillion Headache” from the New York Times
This article looks into the impact of the rising dollar on international debts. According to the author, debtors who borrowed when the dollar value was low will encounter an added burden when repaying at the present rates (nytimes.com). Stronger dollar, as the article elaborates, poses a $10 trillion financial crisis to the global economy. Unless in situations where the borrower holds enough dollar Reserve, the cost of previous loans will rise significantly as the dollar worth is anticipated to rise even further in 2015.
“Dollar Rises on confidence in US Growth” Saudi Gazette. 13 December 2014. Web. 17 December 2014.