Yellen said the dollar’s strength is a reflection of the health of the US economy, relative to others worldwide.
“We have seen a significant appreciation in the dollar, but I think it’s mainly driven by differences in macro fundamentals, across countries,” she said.
“In the case of the US, it’s safe haven flows responding to geopolitical tensions and of course, different paces of monetary tightening,” she added
“From the US perspective, a stronger dollar is ‘our currency, but your problem’ for a lot of the other parts of the world,” Kamakshya Trivedi, Goldman Sachs’ head of global foreign-exchange research, said on a podcast last week.
“In some of the more vulnerable pockets of emerging markets, where there is a substantial amount of dollar-denominated debt, there is already a debt crisis,” he added, pointing to Sri Lanka, Pakistan, and Ghana as examples.
