Emerging Markets Start 2021 With a Record as Dollar Stumbles

  • Bloomberg Dollar Index falls to lowest since February 2018
  • JPMorgan Asset is underweight greenback, sees more EM gains
Dollar Not Mimicking U.S. Fundamentals, Rabobank’s Foley Says
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Emerging-market currencies surged to a record on the first trading day of 2021 as traders brushed aside the accelerating spread of the coronavirus.

MSCI Inc.’s index of developing world currencies climbed as much as 0.7% to 1,731.69, surpassing its previous record set in March 2018 before the U.S.-China trade war hobbled risk appetite. The Bloomberg dollar index fell to the lowest in almost three years before regaining some ground as U.S. stocks declined.