Once new levies take a bite out of imports, the currency’s value is likely to grow, making American goods more expensive for foreign buyers.

The dollar adjusts quickly to signals of where tariffs are headed, and higher import duties strengthen the dollar’s value.

The prospect of tariffs and of interest rates staying higher for longer will likely continue to push up the U.S. currency’s value in 2025.

The dollar has appreciated almost 3% since the presidential election. In general, it’s because investors can make more money with dollars.

The dollar’s value has been stabilizing in recent months. That could help companies’ profits in the near future.

Last week, the DXY index — which tracks the value of the dollar against other major currencies — rose more than 2%, the most in two years.

That could be good news for U.S. exporters, though.

The dollar is more than 10% stronger than it was three years ago.

The scale, liquidity and stability of U.S. financial markets are partly behind the phenomenon.

U.S. exports become more expensive overseas, but imported goods become cheaper here in the U.S.