Emerging Markets Face ‘Wrecking Ball’ From Tariff Turmoil (1)

The upheaval coming from the Trump administration’s tariffs is reinforcing views that the riskiest assets face more losses ahead.

Most emerging-market currencies will decline, according to Societe Generale SA strategists, who warned that China’s yuan is set for a “modest” depreciation and that South Africa’s rand and Latin American currencies will likely be stuck at weak levels. At Goldman Sachs Group Inc., strategists said the dollar unwind will probably support exchange rates in other big developed countries, and not EM.

The “wrecking ball still underway in EM FX, but will slow,” wrote analysts led by Phoenix Kalen at Societe ...