WIKIFX REPORT: U.S. dollar has become 'bit of a wrecking ball': Strategist.

The strong dollar is wreaking havoc on other countries and U.S. multinationals operating abroad. Some strategists see no near-term stop to the rising dollar, even amid a recession.

“The dollar index can continue to rally here,” DailyFX senior strategist Christopher Vecchio told some reporters when discussing on a topic d Finance Live.

The US dollar (DX-Y.NYB) against a basket of currencies is up more than 16% year-to-date. The greenback against the Japanese Yen has gained roughly 30% during the same period.

“There is really no stopping the U.S. dollar versus a low yield in currencies like the Yen,” said the strategist.

“This key fact is that the Federal Reserve right now has such a significant yield advantage in nominal and real terms agains the other major central banks that the dollar has become a bit of a wrecking ball,” added Vecchio.

Even amid a recession in the United States, its unclear how much the dollar would come down, he added.

Dalle wrecking ball

“That‘s the problem right now. I don’t think the dollar falls back that much,” said Vecchio.

“The dollar remains the nicest house in a bad neighborhood and as long as countries are dealing with recession and stagflation, they have the broken windows and the weed on their property. It is difficult to suggest that people arent going to flock to the greenback right now,” he added.