Jim Cramer says the U.S. dollar’s decline helped drive Tuesday’s market gains
- CNBC's Jim Cramer credited the fall in the U.S. dollar with helping stocks close higher on Tuesday.
- "It's time to recognize that the dollar's in charge. Today, at least, the dollar rally took a break, which means the bears took a break, too," he said.
CNBC's Jim Cramer credited the fall in the U.S. dollar with helping stocks close higher on Tuesday.
"It's time to recognize that the dollar's in charge. Today, at least, the dollar rally took a break, which means the bears took a break, too. If the greenback keeps pulling back, maybe they'll go into hibernation," he said.
Stocks gained on Tuesday for a third consecutive trading session, buoyed in part by a decline in bond yields and a weaker dollar.
The value of the U.S. dollar has surged in recent months, driven by the Federal Reserve's interest rate hike campaign and the strong U.S. economy.
The dollar's strength has hurt companies that perform business overseas, since their balance sheets are subject to unfavorable exchange rates.
At the same time, "bond yields reflect whether Wall Street expects more pain from the Fed, which is why it's so good when both of these things go down," Cramer explained.
He added that the dollar was due for a decline, according to charts analysis by DeCarley Trading's Carley Garner. And while the central bank could be looking to slow hikes in December, according to a report in The Wall Street Journal, it remains unclear whether the market's recent strength will continue, Cramer said.
"The market needs time to adjust, and the Fed doesn't want to rock the boat too aggressively right before the [midterm] election," he said.
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