The dollar has strengthened more than 2 percent since President Donald Trump began slapping tariffs on Chinese goods last July. That raised the cost of imports for products priced in dollars, such as oil, noted Charles Dumas, chief economist at TS Lombard in London. Over the same period, the yuan has weakened just about 1 percent, though it was down about 5 percent at the end of October. A weaker Chinese currency made the exports of other countries less attractive, said Dumas. The combined effect of a stronger dollar and softer yuan has contributed to growth slowing outside the U.S. and China, he said.
“The fascinating thing to me is the degree of damage being done outside the two main principals, the U.S. and China,” said Dumas. Other countries “were kind of being squeezed on both ends.”’
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