Swissquote: Fed rate cut would be boon for EM currencies
Cutting interest rates in US will favour risky assets, bank says
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Emerging market (EM) currencies will benefit greatly if the Federal Reserve decides to embark on a path of interest rate cuts this year, says Peter Rosenstreich, head of market strategy at Swissquote.
The bank, which topped this week’s one-month EM currency forecast, believes Fed rate cuts would be met with exhilaration by the market and enhance risk taking, thus favouring EM units.
“We believe that easy monetary
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