Emerging Markets Face the Challenge of a Strong US Dollar

From youtube.com/bloombergquicktake

The US dollar’s rally in 2024 has accelerated, with the dollar index up 4.6% since Jan. 1. That trajectory is set to continue as market skepticism grows over the Federal Reserve’s capacity to cut rates compared to other central banks. But a strengthening dollar can have negative implications for emerging markets, creating challenges for their overall economic stability and growth trajectories. Here’s what you need to know about the dollar’s emerging-market dynamic.