Research

Bonds
Movements in the U.S. dollar can affect capital flows as much as trade flows. There are a number of ways the strengthening dollar can affect global capital markets and capital flows. A strengthening dollar—like any other appreciating asset—attracts foreign capital, and drives prices even higher. In addition, U.S. investors will find that a strengthening dollar can make foreign investing less profitable. But there is more to the story for U.S. investors, especially for fixed income investors.