Should investors fear a rising dollar?

It appears there is a widespread consensus that a stronger US dollar is here to stay. Emerging market economies have traditionally had much to fear from a rising greenback while, for developed countries, it has often been a boon. However, these are not normal times for world markets or for US monetary policy. In currency markets, as in life, it is not just what you do that matters, but the way you do it. Investors need not fear a further rise in the dollar if it occurs in a fairly orderly manner, particularly if it keeps US monetary policy looser for longer. But a more dramatic streng...