Back to News
investment

Carry Trade, Commodities Make EM Currencies More Stable Than G-7

Marcus Wong
Loading...
1 min read
0 likes
⚡ Quantum Brief
Emerging-market currencies have shown unprecedented stability compared to G-7 peers, with JPMorgan volatility indexes revealing lower swings for nearly 200 consecutive days—the longest streak since 2008. If this trend extends to 208 days, it would mark the most prolonged period of relative EM currency stability since 2000, defying historical volatility patterns in global finance. Investors attribute the shift to strong carry trade opportunities and commodity-backed economies, which are shielding EM currencies from fluctuations plaguing developed-nation counterparts. Thailand and Colombia’s upcoming Q4 GDP reports may further test this stability, as commodity-linked growth in EMs contrasts with slower recoveries in advanced economies. The reversal challenges conventional wisdom, suggesting structural shifts in global capital flows and risk appetite favoring emerging markets over traditional safe-haven currencies.
AI Audio Summary
0:00 / 0:00
Click to play
Untitled design (28).png
Quantum News · Media Library

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Thailand and Colombia will publish fourth-quarter gross domestic product figuresEmerging-market currencies are proving more stable than those in developed nations, a streak some investors say could become the longest in more than two decades.JPMorgan volatility indexes show developing nations’ currencies have swung less than their Group of Seven peers for nearly 200 straight days — the longest stretch since 2008. If it passes 208 days, it would mark a record going back to 2000.

Read Original

Source Information

Discussion

0 professional contributions

Sign in to join this professional discussion.

Be the first to add a constructive contribution.