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Opinion
Nir Kaissar

Dollar's Slide Bodes Well for Emerging Markets

The gap narrows with returns in local currency.

Things aren’t going as expected for the dollar. President Donald Trump’s ambitions to lower taxes and rebuild infrastructure, coupled with the Federal Reserve’s plan to raise interest rates, were supposed to strengthen it.

Instead, as Bloomberg News reported on Monday, the Bloomberg Dollar Spot Index -- which tracks the dollar’s movements against 10 leading currencies -- has slid below its 200-day moving average and given back most of its post-election gains. The index was up 5.7 percent from election day to Dec. 31; it’s down 4.1 percent this year through Monday.