The Rising US Dollar Could Be Your Portfolio’s Savior

Stéphane Renevier

5 months ago1:18 min

The Rising US Dollar Could Be Your Portfolio’s Savior

The almighty dollar hasn’t looked this divine in quite a while: the currency has been skyrocketing against almost every other currency since the beginning of 2021, recently breaching its five-year high to trade at levels not seen since 2002.

There are two key reasons why. The first is rising US interest rates, which are making US government bonds more attractive than those of other countries. That’s incentivizing investors to put their money into the country, pushing up demand for and the price of the US dollar.

The second is the nature of the US dollar itself. See, the US dollar tends to perform well both when the global economy is recovering quickly and slowing sharply. This surprising payoff profile – known as the “(

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