BofAML's co-head of Asia FX and rates strategy, Claudio Piron, speaks to Bloomberg TV
- Dollar likely to keep rising versus EM currencies as developing-nation central banks have been reluctant to hike rates
- 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 policy makers are trying to reassure investors about monetary policies
- There will be a battle between EM policy makers and rate differentials lifting the USD
- Latest US employment data release justifies Fed's tightening trajectory and USD strength
- Labour market in the US is "very robust"
Emerging markets are starting to come back into focus as they did towards the end of last year, but this time more so after the situation in Argentina. It's starting to create more awareness and caution especially with the rising dollar, which will also in part flush out hot money flows in high-yielding EM bonds should US yields continue to rise further.
