The Argentine peso (ARS) closed Q3 with a thud, sliding 6% against the dollar on Tuesday. That follows a sharp rally earlier in the month after US Treasury Secretary Bessent dangled a $20bn lifeline.
The violent swings are a reminder of how unstable EM FX remains, and why the asset class will stay front and centre into year-end.
Layer in Brazil’s carry backdrop, India’s long-end dynamics, and rising political risk, and the mix looks primed for selective EM rates and FX trades to deliver.