A 10 percent increase in the dollar in a quarter would reduce U.S. economic growth by half a percentage point over a year and by another 0.2 point the following year, according to a New York Federal Reserve blog post on Friday.
The greenback has gained 12 percent against other major currencies since mid-2014 on improving jobs conditions and in anticipation of a Federal Reserve rate increase by late 2015.
This has raised worries among Fed officials and economists about the impact of a sturdier dollar on U.S. exports.
