US dollar has been rising in recent weeks - analysts see headwind for the stock market from the strong dollar.

US dollar has been rising in recent weeks - analysts see headwind for the stock market from the strong dollar.

The US dollar has strengthened slightly again in recent weeks, which analysts see as a possible headwind for the stock market. This could be particularly damaging to multinational companies, as a stronger dollar makes their goods more expensive and reduces their revenue from abroad.

Own information and effects:

The strengthening of the US dollar has various effects on the market and the financial industry. A possible consequence is a reduction in exports by multinational companies. As the dollar strengthens, their products become more expensive to foreign customers, meaning they can sell less. Additionally, their overseas earnings are converted into US dollars, resulting in a lower value. This can have a negative impact on the profits and share prices of these companies.

On the other hand, smaller US companies can benefit from a strong dollar. Since their revenue comes mainly from the US, their competitiveness in the domestic market is strengthened. This would enable them to perform better than multinational companies.

It is important to note that the strength of the US dollar depends on many factors, such as the US Federal Reserve's (Fed) monetary policy, economic data and the state of the global economy. Therefore, financial experts must always analyze current developments and forecasts to predict possible impacts on the market.

Source:

According to a report by www.finanzen.ch