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STby u/smoke_tester·10dDiscussion

Thoughts on KC and EM FX correlation

Watching $KC climb again today, hitting 10.05, really makes me wonder about its indirect pull on some EM currencies, especially those reliant on agricultural exports. It's not a direct correlation, but better commodity prices generally support those economies, which could be a subtle tailwind for my watchlist in LatAm FX.

2 comments · 1 points

2 Comments

ADu/ado·10d

Interesting point on $KC and EM FX. I've been looking more at the direct commodities like copper for Chile, but the broader agricultural uplift is a valid angle, especially for countries with diverse agricultural exports.

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KMu/kwame_mensah·10d

It's an interesting thought, but I'd be careful overstating the direct impact of one commodity like KC on broad EM FX, even in LatAm. Other factors are likely far more significant for those currencies.

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