Stocks have been on a losing streak, but the dollar’s been winning — and that could help fight inflation

Exchanging USDs for gelato… A year ago, one US dollar would get you 0.82 euro. Today, you can exchange $1 for about 0.95 euro — the currencies are almost equal. That's because the USD has "appreciated," or gained in value, compared to the euro. In fact, the greenback has gained against many currencies (like the Japanese yen, the Chinese yuan, and the British pound). That's good for:

• US imports: A strong dollar makes imported goods cheaper, which should help tamp down inflation (yay). The US = the world’s largest goods importer. Instead of spending $100 to buy 90 euros’ worth of Italian leather, an importer would now spend about $90.
• American tourists: A stronger dollar means you get more foreign currency with fewer dollars. Paris trip = instantly cheaper.
• Uncle Sam: A strong dollar is seen as a stable investment. That makes people more likely to lend money to the US gov't (think: buying Treasury bonds). No one wants to be paid back in a wobbly currency.

Moment of appreciation... for the golden currency of nations. The USD's stable rep has long made it the world's reserve currency for international purchases. Think: countries buy crude oil in USDs. But what's behind the recent appreciation streak? It all comes down to the “d” word: demand for dollars is higher.