Yuan and Euro Declines Harm Emerging-Market Currencies

Reported 18 days ago

Recent drops in the Chinese yuan and euro have negatively affected emerging-market currencies in Asia and Europe, as these currencies serve as anchors for smaller economies. The yuan's depreciation, driven by disappointing stimulus measures and a robust dollar, along with the euro's struggles due to anticipated interest rate cuts, have led to heightened correlations with regional currencies. This situation is compounded by trade dependencies, as weaker yuan or euro values exert downward pressure on neighboring currencies reliant on exports, and expectations of rising U.S. tariffs further threaten their stability.

Source: YAHOO

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