‘Bad situation’: Soaring US dollar spreads pain worldwide

UNDATED (AP)- As the value of the U.S. dollar soars, other currencies around the world are sinking by comparison. This is contributing to skyrocketing prices for everyday goods and services and compounding financial distress, especially in poorer countries. It has stirred complaints from an auto parts dealer in Nairobi, a seller of baby clothes in Istanbul, a wine importer in Manchester, England, and the driver of the colorful Philippine mini-bus known as a jeepney. The dollar is up 18% this year against a basket of key currencies around the globe. The U.S. Federal Reserve’s interest rate hikes have led to higher rates on U.S. government and corporate bonds, luring investors and driving up the U.S. currency.