Why the Dollar Rally Is Crushing Emerging Markets in Mid-2026

International Business with Fexingo: Global Trade, Cross-Border Deals, and Multinational Operations · Jun 26, 2026 · 7m · transcript

As the US dollar strengthens past 120 on the trade-weighted index, emerging market stocks are taking a beating. South Korea's KOSPI is down nearly 9% in a week, and China's FXI has dropped over 5%. In this episode, Lucas and Luna unpack the mechanics of the dollar-EM trade — how a stronger greenback makes dollar-denominated debt more expensive, drains foreign reserves, and forces central banks to raise rates. They examine which countries are most vulnerable, why Taiwan and South Korea are hit especially hard, and what the commodity exporters like Brazil tell us about the divergence…