Institution: Dollar weakness could remain a catalyst for emerging markets in 2026
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Institution: Dollar weakness could remain a catalyst for emerging markets in 2026
According to Jinshi Data, Mohammed Elmi, Chief Portfolio Manager for Emerging Markets Bonds at Hermes Investment Management, said that due to a weaker U.S. dollar and the possibility of further rate cuts by the Federal Reserve, emerging markets may continue to enjoy a loose financing environment in 2026. Elmi noted that Trump has repeatedly expressed his desire for the Fed to cut rates faster and by a larger margin. With current Fed Chair Jerome Powell's term set to end in May 2026, Trump will have the opportunity to appoint a chair more aligned with his policy priorities. Elmi stated that a weaker dollar has become one of the main themes of 2025, with the dollar having fallen approximately 8.2% year-to-date. He added, "Further rate cuts could put additional downward pressure on the dollar."
Navigating Web3 tides with focused insightsTechFlow news, on December 12, according to Jinshi Data, Mohammed Elmi, Chief Portfolio Manager for Emerging Markets Bonds at Hermes Investment Management, said that due to a weaker dollar and the possibility of further rate cuts by the Federal Reserve, emerging markets may continue to enjoy a loose financing environment in 2026. Elmi noted that Trump has repeatedly expressed his desire for the Fed to cut rates faster and deeper. With current Fed Chair Powell's term ending in May 2026, Trump will have the opportunity to appoint a chair more aligned with his policy priorities. Elmi stated that a weaker dollar has become one of the main themes of 2025, with the dollar having fallen about 8.2% so far this year. He added, "Further rate cuts could put additional downward pressure on the dollar."
