Abstract
Significance The dollar has fallen by 2.5% since August 15 and trade-weighted emerging markets (EMs) exchange rates have been flat on average since that date, having lost 11.3% in the year to mid-August. The dollar’s decline amid rising US Treasury yields and the widening gap between US and German benchmark yields provides respite from the intense selling that caused the Morgan Stanley Capitalisation (MSCI) Emerging Markets equity index to fall by nearly 20% since January. Impacts The Brent crude price has risen above 80 dollars per barrel, pressuring EMs including Turkey and India that are large net fuel importers. The renminbi has steadied against the dollar after Beijing said it has no plans to devalue, but growth worries will keep it under pressure. US equities have firm momentum -- investors are the most overweight in them since January 2015 according to Bank of America Merrill Lynch.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
