The Dollar’s Exchange Rate Is Hurting Emerging-Markets Currencies

A strong US dollar is now whacking emerging-markets currencies.

Money managers are selling the South African rand and Brazilian real, reversing a trend earlier in the year when the sharpest commodities rally in modern trading history supported emerging-markets currencies despite a strong dollar. The rand and the real both declined more than 9% against the dollar over the last three months. At the start of April the rand was up more than 8% year to date and the real was up more than 17%.

Leave a Comment