The Kobeissi Letter(@KobeissiLetter):Emerging market currencies are strengthening: The MSCI Emerging Markets Currency Index rose +0.3% on Friday, to 1,917 points, an all-time high. The gauge has now risen for 8 consecutive weeks, the longest streak since September 2021. Over this period, the index has surged +3.3%, driven by weakness in the US Dollar. At the same time, the Bloomberg Dollar Spot Index has declined -2.9%, to its lowest level since May. This comes as the Korean Won has strengthened against the US Dollar to its highest level since September 2025, while the Taiwan Dollar has strengthened to its highest level since June 2026. The weaker Dollar is becoming a major tailwind for emerging markets.

2026.08.24 01:43

Emerging market currencies are strengthening: The MSCI Emerging Markets Currency Index rose +0.3% on Friday, to 1,917 points, an all-time high. The gauge has now risen for 8 consecutive weeks, the longest streak since September 2021. Over this period, the index has surged +3.3%, driven by weakness in the US Dollar. At the same time, the Bloomberg Dollar Spot Index has declined -2.9%, to its lowest level since May. This comes as the Korean Won has strengthened against the US Dollar to its highest level since September 2025, while the Taiwan Dollar has strengthened to its highest level since June 2026. The weaker Dollar is becoming a major tailwind for emerging markets.