tum3123
Emerging markets local currencies have been resilient in 2023 despite surging U.S. rates, with 19 out of 20 countries in the index having positive local returns this year.
The U.S. Federal Reserve’s decision this month to keep rates steady
EM Currencies Remain Resilient As U.S. Rates Stay High
Summary
- Emerging markets local currencies have been resilient in 2023 despite surging U.S. rates, with 19 out of 20 countries in the index having positive local returns this year.
- Despite significantly higher rates for the foreseeable future, however, the U.S. dollar has exhibited weakness since the third quarter of 2022 against emerging markets currencies (EMFX).
- Through June 16, 2023, EMFX has provided a year-to-date return of 2.5%, with 13 of the 20 countries in the J.P. Morgan GBI-EM Global Core Index providing a positive return from a currency perspective.
VanEck’s mission is to offer investors intelligently designed investment strategies that capitalize on targeted market opportunities. VanEck seeks to provide long-term competitive performance through active and index strategies based on creative investment approaches and portfolio delivery.At VanEck we are driven by innovation, our hallmark since the company’s founding in 1955. Our efficiently-constructed investment strategies benefit from our experience and in-depth knowledge of targeted asset classes. Our actively managed VanEck Funds target natural resource equities and commodities, emerging market equities, global fixed income, and liquid alternatives. Security selection is the cornerstone of our approach to managing these funds. Our index-based VanEck Vectors ETFs are purpose-built, aimed at either providing exposure to asset classes that are underrepresented in investor portfolios or offering a superior approach to established investment categories. We offer unique, actively managed investment portfolios in hard assets, emerging markets, precious metals including gold, and other alternative asset classes. Headquartered in New York City, we have a network of offices worldwide, including offices in Sydney (Australia), Shanghai (China), Frankfurt (Germany), Madrid (Spain), and Pfaeffikon (Switzerland).Disclosure: https://www.vaneck.com/seeking-alpha-terms-and-conditions/