The dollar index, a measure of the value of the US dollar relative to a basket of foreign currencies, hit 101.48, its highest level since April 2003, on Friday, Reuters reported, noting that the currency had risen over 4% in the last two weeks, following a steady climb through most of this year.

According to finance analyst and Expert.ru contributor Anna Koroleva, while the strong dollar may seem like an indication of the revival of the US economy, the reality is that “such a meteoric rise of its currency could undermine economic growth in the US,” and poses a threat to the world economy as well. Last week, Joachim Fels, global economic advisor for Pimco, a private investment management firm controlling over $1.5 trillion in assets, told Reuters that both the US and emerging markets would be negatively affected by a dollar that’s too strong.

“And there are other problems,” Koroleva explained. “A strong dollar and rising Treasury yields makes it significantly more expensive for non-financial borrowers outside the US to service dollar-denominated debt,” whose total amount is nearing $20 trillion. “Dollar-denominated loans and investments may be affected too, and on a global scale. Emerging markets, which depend on foreign capital and are vulnerable to capital outflow, will also face pressures,” she said.