Published On: Tue, May 29th, 2018

EM structural strength in focus as dollar rallies, CIBC

InstaForex
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Currencies such as the Argentine peso fell against the dollar in recent weeks

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Investors will look to trade emerging markets on the basis of relative structural strength, as the combination of a stronger dollar and higher US bond yields is making some developing economies comparatively less attractive, says Jeremy Stretch, head of G10 FX strategy at CIBC Capital Markets.

When Treasury yields increase, investors pull funds away from risky asset such as EMs and pump them into safer bets like government bonds. Higher yields also increase borro

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