A Weak Dollar Is A Blessing for Emerging Markets

Authored by Simon White, Bloomberg macro strategist,

The decline in the dollar should see greater inflows to EM equities, amplifying their burgeoning outperformance.

EM stocks have had a bad run ever since the pandemic when developed-market equities, spearheaded by the US, started outperforming. But the weak dollar is a godsend, and the nascent outperformance of EMs this year is set to grow.