Federal Reserve's rate hikes are driving US dollar gains and fuelling inflation elsewhere

Other nations are forced to pay more for imports as their currencies weaken against a stronger US dollar. PHOTO: REUTERS
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SINGAPORE - The US dollar's persistent rise is igniting inflation across the globe as nations are forced to pay more for imports that are mostly priced in the greenback.

Take the Singdollar. It is now around its weakest level versus the greenback in about two years yet 73 per cent or so of the country's goods imports are invoiced in US dollars, according to the Monetary Authority of Singapore (MAS).

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