Our Head of FX Trading, Charles Mangin, shares his insights around the impact of a weakening US Dollar and fluctuating interest rates to emerging markets.
He explains how 'the King Dollar has been weakening since October 2022 and this has alleviated pressure on emerging markets, as lower demand in US dollars has led to increased demand in emerging market currencies. Investors are attracted to the high yield environment within these markets as a weakening dollar stabilises local currencies'.