US Dollar likely to keep rising versus EM currencies - BAML

Claudio Piron, co-head of Asia FX and rates strategy at Bank of America Merrill Lynch (BAML), expressed his view on the US dollar in an interview with Bloomberg TV.

Key Quotes:

“Dollar likely to keep rising versus EM currencies as developing-nation central banks have been reluctant to hike rates.

The ability for some emerging markets to pursue independent monetary policy is now being compromised because of the strength of the dollar.

Some central banks and policymakers are trying to reassure investors about monetary policies.

There will be a battle between EM policymakers and rate differentials lifting the USD.

Latest US employment data release justifies Fed's tightening trajectory and USD strength.

Labor market in the US is ‘very robust’.”