A Reuters poll of foreign exchange strategists showed that most emerging market currencies will struggle to recoup their losses this year against the dollar in the coming months. Expectations of deep interest rate cuts by the US Federal Reserve have receded.
After ending 2023 positively, the rise in the basket of emerging market currencies lost momentum and fell 1.2 percent this year, weighed down by higher U.S. Treasury yields.
Better-than-expected U.S. economic data and extreme comments from Federal Reserve policymakers pushed investors and markets back from expectations of a rate cut, pushing the dollar index up 3 percent in just a few weeks.
Source (Al-Arabiya.net Website, Edited)
