JPMorgan: The weakening of the dollar provides more room for maneuver for emerging market central banks

ChainCatcher message, the MSCI Emerging Markets Currency Index reached a one-week high on Friday. Alex Wolf, Head of Asian Investment Strategy at JPMorgan Private Bank, stated: "Against the backdrop of slowing trade, the broad weakening of the dollar has made the monetary policy outlook for emerging market central banks clearer. As global investors are disappointed with the exceptionalism of the U.S., capital outflows have driven the dollar weaker, which has boosted emerging market currencies (with a few exceptions), providing more room for central banks to formulate policies."