Machine Learning

WHY HAS EMERGING MARKET CURRENCIES WEAKEN AGAINST US DOLLAR

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Synopsis

there are a number of reasons why emerging market currencies have been weakening against the US Dollar… 1) Excessively loose monetary policy in the developed markets (The Fed, The ECB, The BOJ and the Bank of England) 2) Speculation that the Fed will not hike interest rates as previously expected 3) Emerging markets economies are slowing down…China is slowing down…Brazil, Russia and India are slowing down…this will lead to a slowdown in the global economy and will put downward pressure on the US Dollar 4) Emerging market economies are a lot more sensitive to a depreciating US Dollar than developed market economies Here is an excellent article on the subject from the Wall Street Journal… One of the most interesting questions in the current global market environment is why emerging-market currencies, which are down year to date and have been hit especially hard in the past two weeks, have been so weak The dollar has appreciated against every G-10 currency except the Japanese yen The answer is that most