Following the recent U.S. election results, the dollar has strengthened significantly against both G10 and emerging market currencies, reaching its highest level since late 2023. The rise in the dollar is attributed to higher Treasury yields and the election outcomes, which have led to a notable decline in non-U.S. currencies. Year-to-date, dollar-based international stock returns have decreased to 4.5% from 11.3%, while the S&P 500 has increased by 23.1% through last Friday. However, some market indicators suggest that the rally in the dollar may be losing momentum as bullish sentiment from the election begins to fade. Analysts warn that if the U.S. imposes large tariffs on China, it could lead to further declines in emerging market currencies and additional strength in the dollar, which is currently exhibiting volatility similar to equity markets.