Emerging Markets Tested by Rising Dollar Ahead of Biden’s Return

  • Goldman says U.S. dollar may strengthen if vaccines disappoint
  • Turkey, Malaysia and Brazil set to keep interest rates on hold

Photographer: Sanjit Das/Bloomberg

Lock
This article is for subscribers only.

A stronger U.S. dollar is proving to be an early test for emerging-market currencies on the eve of Joe Biden’s inauguration.

The greenback gained over the last two weeks, buoyed by the president-elect’s proposal for a $1.9 trillion stimulus package. Most developing-nation currencies have slumped in that span, and history suggests further pain may be in store.