A weaker dollar will continue to support a broad stock market rally that has already seen an extraordinary run-up this year.
Since topping out in late last September, the ICE U.S. Dollar Index has fallen about 13%.
A weaker dollar "starts to set into motion a few different dynamics," said Yung-Yu Ma, chief investment officer at BMO Wealth Management.
.DXY 1Y mountain ICE U.S. Dollar Index over past year A weaker dollar typically lifts large-cap stocks that are more likely to have an international footprint.
What's more, emerging market companies more easily pay back dollar-denominated debt when the greenback is weaker.
Persons:
it's, Yung, Yu Ma, Shannon Saccocia, Riley Financial's Art Hogan, Hogan, Neuberger Berman's Saccocia, Saccocia, We've
Organizations:
ICE, BMO Wealth Management, Federal Reserve, Bank of Canada, Bank of England, European Central Bank, Vanguard FTSE Emerging