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In an interview with Bloomberg TV, Macquarie’s Singapore Head of Strategy for Fixed Income and Currencies, Nizam Idris, commented on the impact of the US dollar appreciation on the Emerging Market (EM) currencies.

Key Quotes:

“The US dollar will nudge higher against EM currencies from current levels

The US trade policy remains a concern

There will be “some pressure” on EM currencies from a stronger dollar, rising yields

Though the market is still quite far away from a crisis

There’s significant “sigh of relief” among investors in Asia on a trade truce

But the relief was very cautious

It will be “near impossible” for China to reduce trade surplus by $200 bn.”