CURRENT AFFAIRS

Detailed explanation-1: -Strong Dollar: An Overview A strengthening U.S. dollar means it can buy more of a foreign currency than before. For example, a strong dollar benefits Americans traveling overseas but puts foreign tourists visiting the U.S. at a disadvantage.

Detailed explanation-2: -If the Dollar index rises, crude oil and other commodities become costlier. This increases the import cost and creates a deficit in India’s current account. Moreover, it also affects the profitability of oil companies, oil importers, and oil refineries. The opposite holds if the Dollar index falls.

Detailed explanation-3: -The answer is to control inflation. As interest goes high. The interest rate of saving accounts, FD also increased, credit cards, home loan interest goes high, people invest more than spending, circulation of the money goes down in the market, and demand goes down as a result price comes down.

Detailed explanation-4: -The dollar has been gaining strength against the currencies of other major economies. The dollar is strong because the US economy is healthier than those of many other countries and because the Federal Reserve keeps raising interest rates.