Beware, EM Currencies are Weakening

Beware, EM Currencies are Weakening

(Istanbul)

Emerging markets had a rough first half to the year. Between rising western rates and a trade war, there was not a lot to be happy about in EM assets. Then, a few weeks ago, many sources were saying the bear market was over and it was time for a rally. However, investors need to stay sharp, as EM currencies are still sliding, which will lead to lower growth. Weaker currencies also make it hard to pay back Dollar-denominated debt, which could hurt credit. There are also country-specific issues, like the growing trade battle between Turkey and the US.

FINSUM : There are still a lot of macroeconomic developments moving against EMs, but to be fair, the best rallies start in the darkest hours.

  • emerging markets
  • currencies
  • lira
  • debt
  • Turkey
  • dollar

    The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


    The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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