Reports of the greenback's demise are greatly exaggerated — but here's why a stronger dollar is detrimental to stocks, gold and appetite for risk
MarketWatch·2025-10-30 11:07

Core Insights - A stronger dollar negatively impacts risk appetite, precious metals, and earnings [1] Group 1: Implications for Risk Appetite - The appreciation of the dollar tends to reduce investors' risk appetite, leading to a more cautious investment environment [1] Group 2: Impact on Precious Metals - A stronger dollar generally results in lower prices for precious metals, as they are often inversely correlated with the dollar's strength [1] Group 3: Effects on Earnings - Companies that rely on international sales may experience a decline in earnings due to unfavorable currency exchange rates caused by a stronger dollar [1]