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Traders Look for Clues About the Emerging-Market Currency Bounce

  • Key driver will be performance of dollar, U.S. yields: Greer
  • Investors eye negotiations in Latin America, including Brazil
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UBS Sees EM Earnings Growth at 15%

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For all the concern that there’s a crisis brewing in some developing economies, emerging markets are showing resilience going into the final week of May, thanks to the dollar’s recent pause and a drop in U.S. yields.

That may all change should Friday’s payrolls data fan speculation that the Federal Reserve will accelerate the pace of interest-rate increases. But Turkey apart, investors are saluting a week in which emerging-market currencies had their biggest gain since March and local-currency bonds strengthened for the first time in seven weeks as U.S. 10-year yields slipped back below 3 percent. Still, stocks extended the previous week’s losses.