Wave of Rate Hikes No Cure to Emerging-Market FX Weakness
- Thirteen emerging-market central banks to make rate decisions
- Most banks set to raise rates even as omicron threatens growth
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Traders are betting that emerging-market currencies will remain vulnerable into the new year, even as central banks from Moscow to Mexico City are set to push ahead with interest-rate hikes that theoretically should attract investors.
MSCI’s emerging currency index remains 1.6% below a peak in June and few traders appear willing to stick their heads above the parapet as officials from at least 13 developing nations prepare to make monetary policy decisions in the coming days. A potentially seismic shift on policy from the Federal Reserve -- which is considering whether to speed up its stimulus withdrawal -- is also adding to the rocky landscape.