The United States dollar is the most important currency in the world, and its value relative to other currencies moves every asset class on the planet. The dollar’s strength or weakness affects commodity prices, multinational corporate earnings, global trade flows, and the performance of stock markets around the world, but nowhere is the relationship more direct and more powerful than in emerging markets. Emerging market stocks and bonds are among the most dollar-sensitive assets in the world, and the dollar-emerging market relationship is one of the most important transmission mechanisms in global finance. For investors who want to read the…
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