What’s Happening in EM: Carry Traders Shift Away From Dollar

Emerging-market traders are increasingly shifting their funding strategies away from the US dollar as it experiences a strong recovery. Instead, these carry traders are utilizing other currencies, including the euro and the Australian dollar, to finance their investments within the developing world. This trend was discussed by Vinicius Andrade and Kelsey Butler, highlighting a strategic pivot in how traders manage their currency exposure while pursuing opportunities across various emerging markets during this period.