caution
Emerging‑market spillovers expected if Fed delays cut: strategists
Strategists warn that a delayed Fed rate cut, paired with U.S. dollar strength, could trigger capital outflows from emerging markets. As stability concerns weigh on easing bets, investors may reallocate from EM to safer U.S. assets.
Countries with high external debt exposure or weak macro buffers are particularly vulnerable. Meanwhile, EM central banks may need to intervene to defend their currencies, potentially eating into foreign reserves.
Tags:
- global
- emerging markets
Reuters• By Harsh Ranjan
Explore:High Return Equity Mutual Fund
caution
Emerging‑market spillovers expected if Fed delays cut: strategists
Strategists warn that a delayed Fed rate cut, paired with U.S. dollar strength, could trigger capital outflows from emerging markets. As stability concerns weigh on easing bets, investors may reallocate from EM to safer U.S. assets.
Countries with high external debt exposure or weak macro buffers are particularly vulnerable. Meanwhile, EM central banks may need to intervene to defend their currencies, potentially eating into foreign reserves.
Tags:
- global
- emerging markets
Reuters• By Harsh Ranjan
Explore:High Return Equity Mutual Fund
1 min read
65 words
Delayed Fed easing could prompt EM capital outflows, with riskier markets under pressure from USD strength.
Strategists warn that a delayed Fed rate cut, paired with U.S. dollar strength, could trigger capital outflows from emerging markets. As stability concerns weigh on easing bets, investors may reallocate from EM to safer U.S. assets.
Countries with high external debt exposure or weak macro buffers are particularly vulnerable. Meanwhile, EM central banks may need to intervene to defend their currencies, potentially eating into foreign reserves.
Strategists warn that a delayed Fed rate cut, paired with U.S. dollar strength, could trigger capital outflows from emerging markets. As stability concerns weigh on easing bets, investors may reallocate from EM to safer U.S. assets.
Countries with high external debt exposure or weak macro buffers are particularly vulnerable. Meanwhile, EM central banks may need to intervene to defend their currencies, potentially eating into foreign reserves.
Tags:
- global
- emerging markets
- global
- emerging markets
- us
- fx
- macro