The U.S. dollar appreciated versus most currencies last year, as the U.S. economy recovered quicker and had relatively successful distribution of the vaccine to remove restrictions. The chart of the week shows the U.S. dollar index, which is an index relative to other currencies weighted by the amount of trade with other countries. While a strong U.S. dollar allows us to purchase goods and services cheaper from abroad, it also makes the good we sell overseas more expensive and devalues international revenues.
Source: St. Louis Federal Reserve