Currency can have a large impact on international equity returns. The past three years though May 2017 are a great case in point. Over that period the U.S. dollar has been on a tear. Exhibit 1 (below) shows the weighted average of the foreign-exchange value of the U.S. dollar against a broad currency basket.
Exhibit 1: U.S. Dollar Outperformance June 1, 2014, to May 31, 2017
Source:Board of Governors of the Federal Reserve System (US)
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