Wall Street rethinks stock strategy as dollar risks rise

For New York-based hedge fund manager Thomas J. Hayes, the dollar’s downtrend is a signal to buy riskier EM stocks and commodities.

NEW YORK: Six months ago, exchange rates would have mattered less in a global investor’s stock-picking process. Now with the dollar facing what some warn is an existential threat, currencies are in the limelight.

With over 40% of non-US firms’ sales exposed to the world’s reserve currency, according to data from Jefferies Financial Group Inc, everyone is trying to map how a tumbling dollar re-shapes investment across equities.