Indian rupee is the only EM currency that strengthens as the UST yield curve inverts – TDS
|The US Treasury yield curve has inverted. Strategists examine what this means for Emerging Market (EM) currencies on historic sensitivities.
What US yield curve inversion means EM FX?
“Unsurprisingly the USD strengthens as the yield curve inverts. HUF, SGD, KRW, BRL and MXN are the most sensitive EM currencies vs. USD as this happens. If we are correct and the US curve inverts further, pressure on these currencies will likely intensify.”
“On the other end of the spectrum are INR, MYR and TRY, with INR the only EM currency that strengthens as the UST yield curve inverts.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.