HSBC Sage Flags Emerging-Market Pullback on Dollar
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HSBC Holdings Plc, which in February foresaw the longest emerging-market currency rally in five years, says it’s time to pull back as increasing signs of U.S. growth support the dollar.
HSBC, which operates in 74 countries worldwide and gets more than half its revenue from emerging markets, recommends clients reassess their investments in South Africa’s rand, Russia’s ruble and Mexico’s peso. A Bloomberg index of 20 developing currencies has slipped 2.2 percent in the past two weeks, retracing half its gains from February to July.