Currency movements and your portfolio – The opportunities — and pitfalls — of a fluctuating dollar

Description

Abstract: The U.S. dollar is coming off sharp gains relative to its currency counterparts around the world. Such a situation — or its reverse, a falling dollar — is likely to have profound effects on the global economy and financial markets, not to mention on individual businesses, consumers and investors. This article provides investors insight into how shifts in currency value can affect their portfolio’s past performance, as well as ideas about how they might position it appropriately for the future. A sidebar notes factors that can drive currency movements.