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USD/ZAR climbs by 1% as emerging markets hit by Fed commitment to more rate hikes

Emerging market currencies are being dealt a blow by the Fed

ForexLive

The Fed’s reiteration that it will move forward with more rate hikes to come is enough to put pressure on emerging market currencies today but the damage done to risk/equities is adding a secondary blow to said currencies.

The rand is among the laggards in the emerging market currencies space alongside the lira as both currencies are down by more than 1% against the greenback currently.

For the case of USD/ZAR, price is threatening a move back above the 100-day MA (red line) where bias would then turn more bullish once again. With the midterm elections out of the way, the path is clear for the dollar to continue its strong form against the emerging markets bloc as year-end funding demand will help to underpin the dollar as we close out the year.

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