A rising dollar also makes already hot U.S. government debt more attractive to investors, particularly those outside the U.S.

More international investors have piled in to the relatively attractive yields in U.S. government debt as foreign central bank policies have pushed international government yields to near zero or negative in some cases like Japan.

Related: Are Dollar ETFs Ready to Rally?

It might not take much for investors to ditch high-yield currencies, such as emerging markets fare, if the dollar continues its recent run.

“As the lower-for-longer environment has become increasingly entrenched in the mindset of market participants, it would take only a moderate selloff in sovereign debt among advanced economies to cause investors to shun higher-yielding currencies,” according to Bloomberg.

For more information on the greenback, visit our U.S. dollar category.