# Macroscope | Emerging market currencies feel the heat as US economy brightens | South China Morning Post

> Emerging-market currencies are coming under pressure as upbeat US economic data raises expectations of Fed rate hikes. The article notes that EM economies had received large capital inflows in 2017, and that dollar-denominated credit to emerging markets reached US$3.67 trillion.

- Date: 2018-05-08 · published 2018-05-08T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/65215-macroscope-emerging-market-currencies-feel-the-heat-as-us-economy-brightens
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Capital outflows and currency weakness in emerging markets such as Brazil can make imports of feed and grain more expensive for those buyers. A stronger dollar also tends to pressure dollar-priced commodities.

## Read by commodity

- DXY: bullish ▲
- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2018-10-04 | [Soaring US dollar threatens trouble for emerging markets \| Currencies \| The Guardian](https://feedsoft.ai/events/62719-soaring-us-dollar-threatens-trouble-for-emerging-markets-currencies-the-guardian.md) | +0.2% | +1.5% |
| 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 | 2018-09-27 | [World’s two largest economies diverge as China leaves key interest rate unchanged in wake of US Fed cut \| South China Morning Post](https://feedsoft.ai/events/63271-world-s-two-largest-economies-diverge-as-china-leaves-key-interest-rate.md) | +0.4% | +1.6% |
| DXY | 2017-09-18 | [Dollar hits seven week high against the yen as Fed meeting on US interest rates eyed \| South China Morning Post](https://feedsoft.ai/events/69174-dollar-hits-seven-week-high-against-the-yen-as-fed-meeting-on-us-interest-rates.md) | +0.4% | +2.1% |
| DXY | 2018-05-24 | [Southeast Asia braces for emerging-market capital flight - Nikkei Asia](https://feedsoft.ai/events/65268-southeast-asia-braces-for-emerging-market-capital-flight-nikkei-asia.md) | +0.3% | +1.7% |
| USDBRL | 2018-10-04 | [Soaring US dollar threatens trouble for emerging markets \| Currencies \| The Guardian](https://feedsoft.ai/events/62719-soaring-us-dollar-threatens-trouble-for-emerging-markets-currencies-the-guardian.md) | -3.1% | -4.7% |
| 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 | 2018-02-02 | [Signs of Firming U.S. Inflation Put Emerging Market Currencies Under Pressure](https://feedsoft.ai/events/66723-signs-of-firming-u-s-inflation-put-emerging-market-currencies-under-pressure.md) | +3.7% | +2.5% |

## Sources

- scmp.com: https://www.scmp.com/comment/insight-opinion/article/2145095/emerging-market-currencies-feel-heat-us-economy-brightens

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