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Despite the growing appeal of emerging-market assets, the combination of rising US Treasury yields, a weakening dollar, and escalating tariffs poses a significant threat to economies that rely on export-led growth. Local-currency debt issuance offers some protection, but the risk of financial instability remains.
LONDON – Since US President Donald Trump announced his “reciprocal” tariffs on April 2, the sharp rise in Treasury yields, coupled with a weakening dollarhas prompted a broad re-evaluation of global assets. Some investors have turned to emerging-market assets to hedge against financial volatility, diversify their portfolios, and boost returns.
