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Global FX: The dollar, ECB, Treasury manipulator report and the 2H’25 outlook for EM FX

At Any Rate

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Emerging Markets Currency Dynamics Amid Dollar Weakness

This chapter examines the recent performance of emerging market currencies amidst a declining dollar, revealing a contrast in their strength against safe havens like the euro and yen. It advocates for a selective investment strategy, emphasizing creditor currencies in Asia and Central Eastern Europe while advising caution on high carry and commodity currencies due to associated political risks.

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