Lates News

Emerging market stocks and currencies are facing their biggest weekly drop since the peak of the 2020 pandemic. The MSCI Emerging Markets Currency Index fell by about 1.4% this week, while the Emerging Markets Stock Index dropped by over 6%, both on track to record their worst weekly performance since March 2020. The surge in oil prices continues to put pressure on the outlook for emerging market currencies. Citigroup analysts, including Luis Costa, wrote: "In the past few days, we have significantly reduced risk, but we still hope to rebuild our long positions in emerging markets when there are signs of stability." He pointed out that although there are "preliminary signs of stability in oil prices," it is still too early to assume that oil prices will follow the trend after the 2022 Russia-Ukraine conflict. Safe-haven demand has boosted the US dollar, causing all emerging market currencies to depreciate against the dollar this week.