As the U.S. dollar has continued to strengthen after the Federal Reserve raised interest rates five times this year, its exchange rate has remained high against other currencies, causing great damage to the global economy. In this regard, the World Bank pointed out that under the influence of the Fed's interest rate hike, many central banks around the world have raised interest rates to deal with inflation, and the global economy will go into recession in 2023.

On September 21st, at the end of a two-day monetary policy meeting, the Federal Reserve raised interest rates for the fifth time this year by three-quarters of a percentage point to a range of 3%-3.5% to combat inflation, a move that is likely to further boost the dollar.

The trend of US dollar index shows that the duration of previous US dollar strength will last about 5-6 years. Now, it is in the third strong cycle, and the fourth wave of US dollar index shock has just begun. It is expected to start to fall in the first half of 2023 and continue to rise in the beginning of 2024.

As is known to all, the US dollar, as the world currency, occupies a dominant position in global trade and finance, and the fluctuation of the US dollar exchange rate has a huge impact on the world economy. The euro, yen and pound have all fallen to their lowest levels against the dollar in decades, driven by the dollar's strong appreciation.