Emerging Economies Hit Hard as Dollar Strengthens

A strengthening US dollar and various economic challenges have caused the biggest decline in emerging market currencies since 2022. The JPMorgan emerging market currency index has fallen over 5% in the past two and a half months, with at least 23 currencies weakening against the dollar this quarter. This decline is attributed to expectations of Trump's trade policies, country-specific issues, and a general shift away from riskier assets.