-
Emerging-Market Currency Volatility Erases War-Time Spike
Options traders have cut their expectations of currency volatility in emerging markets to levels seen before Russia invaded Ukraine in February 2022. The JPMorgan Emerging Market Volatility Index, an indicator of foreign-exchange swings three months ahead, fell to 8.86% on Friday. That was the first time since the war began that the measure closed below 9%, and marked the lowest level for the gauge since October 2021. The lowering of traders’ anxiety about emerging-market currencies signals optimism the US dollar’s downward trend this year will continue. As the Federal Reserve takes a mini pause in interest-rate ... (full story)