The Fed remains the key driver for EM markets in early 2022 but EM currencies have underreacted to US rates repricing, with the higher carry now available on EM FX cited as a potential buffer. We discuss whether EM FX carry is a strong enough factor to cushion the asset class from the historical experience of EM currency weakness around the start of Fed hiking cycles.

This podcast was recorded on January 27, 2022.

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