# Soaring US dollar threatens trouble for emerging markets | Currencies | The Guardian

> The strong US dollar, under hawkish Fed chairman Jerome Powell, is expected to keep rising rates into 2019. Higher US rates tend to pull foreign funds out of emerging markets and pressure local currencies.

- Date: 2018-10-04 · published 2018-10-04T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/62719-soaring-us-dollar-threatens-trouble-for-emerging-markets-currencies-the-guardian
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

Emerging-market currency weakness raises import costs for feed buyers in those countries and can curb their purchases of US feed grains and meals.

## Read by commodity

- DXY: bullish ▲
- USDBRL: bullish ▲
- USDINR: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-04-08 | [No peace for emerging market currencies as mighty US dollar reigns: Poll- Moneycontrol.com](https://feedsoft.ai/events/42145-no-peace-for-emerging-market-currencies-as-mighty-us-dollar-reigns-poll.md) | +0.3% | +3.1% |
| DXY | 2018-05-08 | [Macroscope \| Emerging market currencies feel the heat as US economy brightens \| South China Morning Post](https://feedsoft.ai/events/65215-macroscope-emerging-market-currencies-feel-the-heat-as-us-economy-brightens.md) | -0.1% | +1.5% |
| DXY | 2020-03-19 | [Why the U.S. dollar’s relentless rally is causing pain for emerging markets - MarketWatch](https://feedsoft.ai/events/7018-why-the-u-s-dollar-s-relentless-rally-is-causing-pain-for-emerging-markets.md) | +0.5% | -0.9% |
| DXY | 2018-08-30 | [Fresh Stress Grips Weakest Emerging-Market Currencies](https://feedsoft.ai/events/63696-fresh-stress-grips-weakest-emerging-market-currencies.md) | +0.9% | +0.3% |
| DXY | 2021-11-24 | [Surging dollar awakens volatility in currency markets](https://feedsoft.ai/events/11257-surging-dollar-awakens-volatility-in-currency-markets.md) | -0.1% | -0.2% |
| USDBRL | 2018-08-15 | [Dollar Rises Against Emerging-Market Currencies  - WSJ](https://feedsoft.ai/events/12515-dollar-rises-against-emerging-market-currencies-wsj.md) | +2.8% | +6.5% |
| USDBRL | 2018-05-08 | [Macroscope \| Emerging market currencies feel the heat as US economy brightens \| South China Morning Post](https://feedsoft.ai/events/65215-macroscope-emerging-market-currencies-feel-the-heat-as-us-economy-brightens.md) | +1.9% | +6.3% |
| USDBRL | 2020-03-19 | [Why the U.S. dollar’s relentless rally is causing pain for emerging markets - MarketWatch](https://feedsoft.ai/events/7018-why-the-u-s-dollar-s-relentless-rally-is-causing-pain-for-emerging-markets.md) | -1.1% | +2.8% |

## Sources

- theguardian.com: https://www.theguardian.com/business/2018/oct/04/soaring-us-dollar-threatens-trouble-for-emerging-markets

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.