Emerging markets optimistic as dollar falls

 

Goldman Sachs said the likelihood that the dollar may have peaked will have a positive impact on equities, bonds and currencies in emerging economies, as these economies often reap the benefits of weak dollar cycles.

He added that the u.S. currency's 3% decline since its record high in mid-May reflected positively in China's MSCI index and emerging markets in Southeast Asia.

The Bank noted that there are signs of investors returning to emerging markets, with trading volumes on the Chinese stock exchange 6 times its daily average, while the currencies of China, Indonesia and South Korea have benefited.