Goldman Sachs expects that a weaker US dollar will drive strong performance in carry trades for emerging market currencies.

Goldman Sachs stated that high-yield emerging market currencies are still vulnerable to concerns over economic growth, but with the basic expectation of a weakening US dollar, carry trade strategies will perform well. "If the tariff outcomes are more moderate," the Indian Rupee will continue to appreciate," wrote strategist Teresa Alves in a report. In the mid-term, the Brazilian Real, South African Rand, and Hungarian Forint are seen as bullish targets for carry trade strategies. "In relative value emerging market carry trades, the Chilean Peso can be used as an attractive funding currency to reduce risk exposure."