This pages looks at the relationship between currency movements and international equity investing. The left side shows how cycles in the real-trade weighted U.S dollar tend to last a few years. Recently, we have been seeing a very strong pickup in the USD. Additionally, it shows how currency movements are closely tied to the growth differential between the U.S. and the rest of the world. On the right side, we show returns for the MSCI All Country World ex-U.S. index and illustrate the impact of dollar moves on international returns. In times when the U.S. dollar was strengthening, U.S.-based investors saw a drag on their international returns.