US President Joe Biden confirmed that he is “not concerned” about the strength of the dollar, in comments that analysts believe may weaken the Japanese yen, the pound sterling and the euro more after their decline to its lowest levels in 32, 38 and more than 20 years, respectively. This comes against the backdrop of divergent monetary policy between the United States and Japan, while the European Central Bank and the Bank of England’s attempts to save the euro and sterling have so far failed, as the former fell below the parity rate, while the sterling is close to meeting the same fate.“I’m not worried about the strength of the dollar,” Biden said in a press statement in western Oregon when asked about the dollar. I worry about the rest of the world.”
“The problem is the lack of economic growth and sound politics in other countries, not ours,” Biden added.
Since earlier this year, the US Federal Reserve has pushed ahead with a series of dramatic interest rate increases to tackle decades of high inflation, making the dollar more attractive to yield-seeking investors and pushing the currency’s value sharply higher.A strong dollar helps curb inflation in the United States because it lowers the prices of imported goods, but it can negatively affect poor countries in particular by increasing import costs and their dollar-denominated debt burden.