Should investors fear a rising dollar?

Stephanie Flanders, chief market strategist for UK and Europe at JP Morgan Asset Management, examines the issue

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Stephanie Flanders

There appears to be a widespread consensus that a stronger US dollar is here to stay. Emerging market (EM) 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 either the world markets or US monetary policy. In currency markets, as in life, it isn't 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

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