No Peace for Emerging Market Currencies as Mighty US Dollar Reigns: Reuters Poll

No Peace for Emerging Market Currencies as Mighty US Dollar Reigns: Reuters Poll
U.S. dollar notes in front of a stock graph in a picture illustration on Nov. 7, 2016. Dado Ruvic/Illustration/Reuters
Reuters
Updated:

JOHANNESBURG/BENGALURU—Most emerging market currencies will continue to struggle against the mighty dollar over the coming year as the U.S. Federal Reserve finally delivers expected aggressive policy tightening, according to a Reuters poll of FX strategists.

Central banks in emerging market economies have been bracing for this for months by hiking their benchmark interest rates. But the actual moment when the Fed delivers half-point rate increases and rapid balance sheet reduction still matters.