”Ehiwario Efeyini, Director and Senior Investment Strategist Exchange rates have accounted for a significant portion of the leadership in international equity markets this year, with the U.S. dollar (USD) falling by 5% to 10% against most major global currencies. As of the end of last month, currency appreciation had accounted for around 50% of the USD-denominated total return in Europe, close to 35% of the USD-denominated total return in emerging markets and almost the entire USD-denominated total return in Japan so far in 2025 (Exhibit 2). And given the likelihood of further shifts in global trade, fiscal and monetary policy over the months ahead, we would expect exchange rate movements to remain a key driver of investor returns.”
Morten W. Langer
