Reuters Dollar Forecast
EM currencies are expected to strengthen against the dollar after China reopens by lifting corona virus restrictions, while only the Turkish lira and Mexican peso are expected to depreciate.
Currency analysts polled by Reuters predict that the currencies of developing countries, especially those that export commodities to China, the world’s second-largest economy, will appreciate against the dollar in the next six months.
On the other hand, the TL, which registered the worst performance last year, is expected to depreciate 12 percent in the next six months and trade at $21.68.
‘IF THE POWER DOES NOT CHANGE, TL WILL TEND TO DECREASE’
Brendan McKenna, international economist at Wells Fargo, said that due to the lack of an independent central bank and unconventional monetary policy, TL will maintain a downward trend against the dollar for the foreseeable future unless there is a change of power. in the presidency. elections.
Investor confidence in emerging markets rose after China ended the zero-COVID practice, which began during the coronavirus epidemic, late last year, but expectations that the US Federal Reserve will continue to rise. (Fed) would continue to tighten its monetary policy reduced the risk. appetite.
Emerging markets face a serious risk of Fed rate hikes continuing and the dollar strengthening. However, China’s reopening is believed to stimulate domestic consumption and tourism, supporting neighboring countries in North and Southeast Asia and many developing countries with economies that depend on commodity exports. (Reuters)
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
