A second factor has been heightened concern about the global outlook and an associated decrease in investor risk tolerance – factors that tend to increase investment in dollar assets.
In recent months, investors have been particularly focused on the possibility of a sharp slowdown in China and other emerging market economies, with commodity exporters seen  1  At times, starting in the 1990s, several central banks – most prominently, the Bank of Canada – have used a monetary conditions index, generally a weighted average of changes in a short-term interest rate and a multilateral exchange rate from some baseline, as a policy indicator.