Wall Street Rethinks Stock Strategy as Dollar Risks Rise
- Investors are bracing for a further slide in U.S. currency
- EM stocks seen benefiting, Japanese shares could lag
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Six months ago, exchange rates would have mattered less in a global investor’s stock-picking process. Now with the dollar facing what some warn is an existential threat, currencies are in the limelight.
With over 40% of non-U.S. firms’ sales exposed to the world’s reserve currency, according to data from Jefferies Financial Group Inc., everyone is trying to map how a tumbling dollar re-shapes investment across equities. Some are betting emerging market shares will benefit, others point to value in America, while Japanese stocks are seen lagging should the greenback slide more.