Developed and emerging economies alike have seen the value of their currencies plummet in recent months due to the economic reverberations of the ongoing war in Ukraine. Food and fuel shortages have put upward pressure on prices, and inflation has soared to record highs in some places. While inflationary pressures are surely being felt in the US, the greenback has reached a two-decade high compared to other major currencies. This is in part because the US Federal Reserve’s measures to curb inflation have boosted investor confidence. However, a strong US dollar can have painful consequences for other states, particularly import-reliant ones, because most global commodities are priced in US dollars. We take a look at the value of currencies used in the world’s largest economies compared to the US dollar before and after Russia invaded Ukraine.
