The dollar has been a point of contention for non-U.S. policymakers for years. Brazil provides a useful example. In 2010, Brazil’s central bank had to repeatedly intervene to limit the strength of its currency, the real, as the dollar was declining. Then, only three years later, as the dollar recovered, Brazil complained about having to act again, this time to limit real weakness. For countries like Brazil that depend heavily on exports, sharp currency swings make it much more challenging for local companies to price export goods and anticipate profitability.
