US recovery drives the dollar sharply higher

FILE - In this Sept. 24, 2014 file photo, a sheet of uncut $100 bills is inspected during the printing process at the Bureau of Engraving and Printing Western Currency Facility in Fort Worth, Texas. A strengthening U.S. economy, combined with a gloomy outlook for growth elsewhere in the world, is pushing the U.S. currency to its highest level in more than a year. (AP Photo/LM Otero, File) FILE - In this Sept. 24, 2014 file photo, a sheet of uncut $100 bills is inspected during the printing process at the Bureau of Engraving and Printing Western Currency Facility in Fort Worth, Texas. A strengthening U.S. economy, combined with a gloomy outlook for growth elsewhere in the world, is pushing the U.S. currency to its highest level in more than a year. (AP Photo/LM Otero, File)

By Associated Press September 9, 2014 5 min read

NEW YORK (AP) – In the world of currencies, the dollar is starting to look like a safe home in a tough neighborhood.

A strengthening U.S. economy, combined with a gloomy outlook for growth elsewhere in the world, is pushing the U.S. currency sharply higher.

The dollar is up 6.4 percent against a group of major currencies since the start of May and has risen in three of the past four months. The U.S. currency climbed to its highest level in six years against the Japanese yen Tuesday, and it’s trading at its highest level in 14 months against the euro.

A continued run-up could mean lower prices for imported cars and crude oil. On the other hand, it could also crimp profits for U.S. companies as their goods become pricier overseas.

A stronger dollar starts with a healthier U.S. economy, and recent news on that front has been mostly good. Construction, manufacturing and autos sales have all been strong.