Emerging-Market Rebound Yields Best Annual FX Rally Since 2017
- EM currencies, equities and bonds all advanced in 2023
- More gains beckon in 2024 as dollar, US yields seen falling
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Emerging-market currencies closed out their best year since 2017 after soaring in the final quarter as the outlook for lower interest rates in the US revived investor appetite for risk.
The MSCI gauge of currencies edged higher Friday, the final trading day of a year in which it gained 4.8% against the dollar. Hard-currency debt from developing countries posted its best returns in four years and emerging equities snapped a two-year losing streak.