Tag Archives: Currency scorecard

Trade tensions could continue to have an impact, but we have a more constructive view on emerging-market currencies than at the start of the year.Despite recent moderation in the US dollar and in the 10-year US Treasury yield, emerging-market (EM) currencies remain under pressure, especially as a result of a recent escalation in trade tensions. Asian currencies have outperformed their emerging peers. The stability of the Chinese renminbi is likely serving as an anchor for Asian currencies,...

Trade tensions are likely to hold the key to the longer-term outlook for EM currencies.Our EM FX scorecard ranks 10 EM currencies according to key criteria such as growth and vulnerability to external shocks. There have been few changes over the past month. The scorecard shows the Brazilian real as the most attractive EM currency over the coming 12 months.EM currencies have generally been weak recently for a combination of reasons. This has led to the relative outperformance of ‘defensive’...