Emerging Markets and Commodity Prices

commodity prices: It also pushing down commodity prices, hurting producers such as Brazil, and threatening other emerging markets where companies borrowed in the U.S. currency when it was cheaper, according to Bloomberg. On the flip side, the euro area and Japan are cashing in as their companies gain the edge in world markets that economies need to boost growth. The greenback ascent to the highest in a dozen years on a trade-weighted basis is eroding the competitiveness of the U.S. and countries whose exchange rates track the dollar, including China. The likes of India are benefiting, too, by paying less for their energy imports. The U.S. Dollar Index, which tracks the currency performance against six of its counterparts, has risen about 25 percent from a May 6, 2014, low as investors bet the U.S. expansion will outpace its trading partners and the Fed soon will raise interest rates while other countries retain an easy stance. The dollar rise is sorting the world into winners and losers, said Peter Hooper, chief economist at Deutsche Bank Securities Inc. in New York and a former Federal Reserve official. (news.financializer.com). As reported in the news.