XLC - Dollar hits highest level since 2002; here are five big impacts

The U.S. dollar index is rising again Monday, closing in on 104 and at its highest point in nearly 20 years. The greenback (USDOLLAR) has "soared this year as a ‘safer haven’ and as Fed hikes interest rates," eToro strategist Ben Laidler wrote. "The hawkish Fed and risk aversion has driven the US dollar to a 20-year high against developed market currencies." "It has soared through key levels against the Yen (130) (FXY), Euro (1.05) (FXE), and Pound (1.25) (FXB), as they slumped 8-12% this year alone. Only the commodity driven Brazilian real, Russian ruble, and Colombian peso have outperformed." Laidler outlines five impacts of a stronger dollar: "Emerging Markets: A stronger USD especially hurts emerging markets (EEM), by raising USD financing and debt pressures. The stronger the USD is, the more local currency a country needs to repay." "Commodities: A stronger USD makes commodities (DJP), which are mostly priced

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Dollar hits highest level since 2002; here are five big impacts