How the Strong Dollar Is Reshaping Global Trade in 2026

The trade-weighted US dollar index hit 120.1 in early June 2026, its highest level in over two decades. That strength is reshaping global trade flows in ways many investors overlook. In this episode, Lucas and Luna examine how a strong dollar acts as both a tax on US exports and a subsidy for foreign competitors. They break down why the dollar's rally is widening the US trade deficit despite a narrowing current account gap, and why emerging market currencies like the Chinese yuan are diverging from the trade-weighted index. They also discuss which sectors and countries are winning and losing in a strong-dollar world, drawing on specific data from the latest trade balance figures and the dollar's trajectory against the euro, yen, and yuan. #StrongDollar #USDollar #GlobalTrade #TradeDeficit #EmergingMarkets #CurrencyWars #Exports #Imports #Euro #Yen #Yuan #FederalReserve #Economics #WorldTrade #FexingoBusiness #BusinessPodcast #GlobalEconomy #TradeBalance Keep every episode free: buymeacoffee.com/fexingo