Why is the U.S Dollar so much stronger than a majority of other currency around the world?

Question

I have always wonder why its so much stronger ? when you go to Japan, everything is cheaper in a sense and the U.S dollar means more in Japan. Why is that ?

In: Economics

Answer 1

Everything everyone is saying is true, but the dollar is strong in this particular moment because monetary policy is tight. Higher interest rates decrease the supply of dollars and the dollar will weaken when the Fed lowers interest rates.