Can Emerging Market Currencies Survive the Dollar?

A couple of emerging market currencies are still stronger relative to the dollar year to date. The Brazilian Real and the Mexican peso have held their own against the dollar. They started their rate hike cycles much earlier and have been going again at a very rapid clip that either matches or outpaces the Fed. So I think the lesson of that is that it is possible to have some degree of currency stability. But for that, you need to be able to keep up or even outpace the rate hikes that the US is delivering.