'One of the big impacts on the dollar is the Fed hiking rates especially as other central banks stay pat,' says Luke Tilley, chief U.S. Overall, the greenback is expected to get stronger in the next year or two because the Fed is raising rates while other countries like the U.K., Japan and European Central Bank are lowering rates, which weakens their currencies. In recent weeks, oil prices have gone south, also helping the dollar's value. When oil prices fall, the dollar goes up, and vice versa. For example, before the Fed raised rates in December 2015, the tiniest hint of a rate hike caused the dollar to surge.Īnother key factor for the dollar is oil. More rate hikes - or at least the belief of more to come - would strengthen the dollar. Higher prices would force the Fed to raise interest rates faster. There aren't many details to Trump's big spending plan, which makes it difficult to know how much it will help or hurt the economy. trade declined and America's manufacturing sector went into recession for five months. The dollar rose sharply on the hopes that the Fed would raise rates, then U.S. manufacturers ship abroad, the cost of doing business goes up if the dollar gains value. When the dollar rises, it makes American goods more expensive - and less attractive - to foreign buyers. In fact, it could hurt the very manufacturing workers Trump has vowed to help. Related: Trump's tax cuts may not be so big after allīut a stronger dollar isn't good for all Americans.

That boost would increase overall economic growth in America, which has been sluggish in recent years. Trump promises to spend big on America's roads and bridges, which could increase prices, wages and employment.

Cnn news november 13 2015