Traders work on the floor of the New York Stock Exchange (NYSE) on August 24, 2018 in New York City. Spencer Platt/Getty Images/AFP
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U.S. fund investors are in no rush to shore up defenses against the strong dollar. The greenback's 6 percent leap over the past six months has flummoxed markets from Turkey to Argentina, whose governments have to repay debt in dollars.That makes the funds more resilient in a "king dollar" world, when the greenback is dominant, which hurts U.S. investors converting foreign stock gains back into dollars.Some investors are betting that the dollar's run has gone too far given the risk of seismic U.S. congressional elections in November or the potential for the U.S. Federal Reserve to slow down the pace of interest rate hikes.Still, the dollar tends to falter later in the year, especially ahead of U.S. midterm elections, Silapachai said.The dollar could also falter if rates do not keep rising.Conversely, if emerging markets rebound, U.S. investors could sell dollars to buy foreign stocks.
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