Trump "raids" a new round of devaluation is coming! Emerging market currencies plummeted across the board

A new round of devaluation is coming.

As U.S. President-elect Trump is about to take office, the market has expressed increasing concerns about the policy impact that Trump's new deal may bring. Affected by this, emerging market currencies have experienced varying degrees of selling. Among them, the Vietnamese dong exchange rate has fallen to a record low. Analysts pointed out that it is expected that the exchange rate of the Vietnamese dong against the U.S. dollar may continue to weaken in the future, and the Central Bank of Vietnam may increase the supply of U.S. dollars to stabilize market fluctuations.

In addition, the Korean won, Brazilian real, Argentine peso and other currencies have depreciated even more. On December 31, 2024, the Korean won exchange rate against the US dollar fell by 0.37%. The cumulative depreciation rate for the whole year of 2024 reached 14.5%, the largest since 2008. Decline; the cumulative depreciation rate of the Brazilian real and Argentine peso against the U.S. dollar in 2024 will both exceed 27%.

Analysts believe that the continued strength of the US dollar has intensified the depreciation pressure on some emerging market currencies....
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