The U.S. Dollar Is ‘Back in Play,’ So Carry Trades May Suffer
Beware a reversal in hot-money flows to emerging markets.
Dollar Maintains Climb on Fed Bets
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The U.S. dollar and Treasury yields are trending higher as investors foresee an interest rate increase come December.
Pricing in this anticipated Fed hike comes after the central bank stayed its hand last month following an episode of market turmoil. You could forgive investors for having a sense of déjà vu, as this backdrop across a number of asset classes is similar to what transpired during the second half of 2015.