Emerging Market Currencies Seen Recovering Some Losses Against U.S. Dollar in 2024
-
Emerging market currencies are expected to gradually claw back some losses against the U.S. dollar in 2024 as the dollar's strength fades.
-
The dollar has retreated recently as the Fed has held interest rates steady and U.S. economic growth shows signs of slowing.
-
Most emerging market central banks are expected to follow the Fed's lead and cut rates in 2024, limiting currency gains.
-
A few Asian currencies like the Indian rupee, Thai baht and Korean won may fully recoup 2023 losses by late 2024.
-
The Chinese yuan, South African rand, Brazilian real and Mexican peso are only expected to recover some of their steep 2023 declines next year.