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Emerging Markets Report: Trump-powered dollar to be the bogeyman of 2017 for emerging markets

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A strong dollar will be a recurring nightmare for emerging markets.

Foretelling the future is a daunting task. But the one thing that strategists are agreed on for 2017 is that Donald Trump’s presidency will usher in a new era of dominance for the U.S. dollar that will have wide-ranging implications.

Among the biggest casualties of the buck’s rise will be developing economies, which tend to be more sensitive to external shock.

Ethan Harris, global economist at Bank of America Merrill Lynch, cautioned that emerging markets are vulnerable on two fronts: capital outflows in response to higher rates in the U.S.

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