Forex Traders Overwhelm Emerging Markets’ Central Bankers
$DXY, $OIL, $GLD, $SLV
Selloff forces EM central banks to raise interest rates
- Currencies have struggled to find a floor despite rate moves
Central banks in emerging economies are losing the battle with markets as their efforts to shield their currencies struggle for traction, suggesting policy makers have more work to do.
Rising US interest rates, the strong USD, higher Crude Oil prices, China’s market and economic wobbles and fears of a global trade war are conspiring to pressure emerging-market currencies.
The markets respond daily to central bank moves.