Will the rise of the USD threaten EM growth? But some analysts are suggesting that the USD’s strong run in September might point to a potential emerging markets currency sell-off, says Roger Blitz in the newspaper. “The chief cause of EM’s difficult September has been a recovery in the USD, which has drawn strength from signs that the Federal Reserve is intent on raising rates further, even as inflation remains subdued,” he writes. Not everyone is projecting doom and gloom. Piotr Chwiejczak, EM foreign-exchange strategist at BNP Paribas, believes that smaller current account deficits and accelerating economic growth have helped make EM less vulnerable. He adds that EMs are also less susceptible to fluctuations in the Chinese economy.

This comes as BlackRock has put out a strategy note it says can balance the risk of lengthening durations of emerging markets bonds as a result a stronger USD. “BlackRock recommends switching from index-tracking funds to active managers who can quickly shuffle the portfolios and shore up positions on developing-nation USD debt threatened by inflation and higher rates,” writes Srinivasan Sivabalan for Bloomberg.