Top Searches
Advertisement

Emerging Market Currencies Under Pressure: Reuters Poll Indicates Widespread Weakness to Come

Updated: May 06, 2025 16:50

Image Source: MoneyControl
A Reuters poll conducted recently shows that the majority of emerging market currencies are predicted to decline against the U.S. dollar within the next three months, as investors are unnerved by escalating global trade tensions and changing economic policies.
 
Main Points:
  • Most foreign exchange strategists polled expect emerging market currencies to lose against the dollar in the short term, citing the effects of increased U.S. tariffs and ongoing economic uncertainty.
  • Big banks such as JPMorgan have revised their views on emerging market currencies to "underweight," pointing out that recent U.S. tariff increases have been worse than worst-case scenarios and are set to fuel capital outflows and rising risk premiums for emerging economies.
  • Analysts add that Asian and European emerging markets are most exposed, with their currencies likely to further weaken, while Latin American and frontier markets might do somewhat better.
  • The Indian rupee, for instance, is estimated to fall more than 1% to 87.88 per dollar in three months, with ongoing strain from trade war concerns, moderating domestic growth, and declining foreign investment.
  • Although the U.S. dollar has experienced some recent losses, safe-haven demand and the absence of compelling alternatives still underpin its strength, despite increasing worries about long-term fiscal health and Federal Reserve policy.
There are a few exceptions: currencies such as the Indian rupee might experience some stabilization through central bank intervention, but most emerging market currencies will likely continue to be under pressure for the remainder of the year.
 
Sources: Reuters, FocusEconomics

Advertisement

STORIES YOU MAY LIKE

Image Source: IPO Central
Sahana System and IPRCL Forge Strategic Alliance to Drive Next-Gen IT Solutions in Indian Railways and Infrastructure
Image Source: IPO Watch
JG Chemicals Expands Andhra Pradesh Footprint: Subsidiary Acquires Land for ₹23.4 Million
Image Source: Flashscore
Will Jacks Fires as Mumbai Indians Race to 103/3 in 11.1 Overs Against Gujarat Titans
Advertisement
Image Source: CSA Advisor
Piramal Enterprises Delivers Solid Q4: Profit Rises to ₹1.02 Billion, Revenue Tops ₹28.54 Billion, ₹11 Dividend Announced
Image Source: Trade Brains
Welding Success: Ador’s ₹20 Dividend and Q4 Results Set the Market Abuzz
Image Source: Trade Brains
Paradeep Phosphates Q4 Profit Rises 115%, Declares ₹1 Dividend In Line With Strong Revenue
Image Source: MoneyControl
From Fields to Fortunes: Krishana Phoschem’s Q4 Profit Blooms to New Highs
Advertisement
Live Blogs
Prabhsimran’s Power-Hitting Propels Punjab Kings to Commanding Win Over LSG in Dharamsala
From MI to RR: Akash Madhwal Swings Back with a Vengeance
IPL’s Six-Hitting Hotspots: Wankhede Nears 2,000 as Chinnaswamy Tops the Charts
Batting Beyond Limits: Prabhsimran Singh’s Historic 1000-Run Triumph for PBKS
Top Stories
Image Source: The Financial Express
Onelife Capital Advisors: SAT Remains Penalty Recovery, Retains Market Access Restriction, 'Fit and Proper' Status Untouched
Image Source: Ynetnews
Israeli Jets Strike Sanaa Airport After Houthi Missile Hits Tel Aviv, Tensions Escalate in Yemen
Image Source: The Hindu Business Line
GMDC Signs Mega 40-Year Limestone Supply Agreement from Kutch's Lakhpat Punrajpur Mine, Opening Doors to Industrial Expansion
Image Source: The Hans India
Sify's Chennai and Noida Data Centers are NVIDIA DGX-Ready Certified, Marking a New Era of AI Infrastructure in India
Advertisement
Advertisement

Follow WOWNEWS 24x7 on:

Copyright 2024 WOWNEWS 24x7. All rights reserved. The WOWNEWS 24x7 is not responsible for the content of external sites. Read about our approach to external linking.

Powered By Just Imagine