Emerging market assets rise, boosted by "sell America" trades

ChainThink reports: Driven by the continuous withdrawal of assets from the US, currencies and stocks of developing countries rose at the beginning of this week, prompting investors to turn to undervalued emerging market assets. As of 00:00 Beijing Time on Tuesday (12:00 PM Eastern Time), the MSCI Emerging Markets Currency Index rose 0.2%, reaching the highest intraday level since early October 2024. The zloty of Poland, the leu of Romania, and the Thai baht recorded the largest gains in a basket of currencies tracked by Bloomberg. Concerns about the slowdown of the world's largest economy—and recent worries about President Trump possibly firing Federal Reserve Chair Powell—are fueling the so-called "sell America" trade, leading to a sharp decline in US stocks and the US dollar. The dollar fell to its lowest level since the end of 2023 at one point. "This is a rotation from the US to Europe, which also benefits some emerging markets," said Brad Becktel, head of foreign exchange at Jefferies.