“Weakness in EM currencies seems to continue and those countries which have a large current account deficit are most vulnerable,” Hertta Alava, the head of emerging markets at FIM Asset Management Ltd., told Bloomberg.
The Chinese yuan jumped 3.1% earlier this month after China’s central banks surprised markets by changing its currency policy.
Moreover, the Australian dollar, another big component of USDU, has depreciated 12.4% against the dollar.
Meanwhile, the euro, yen, franc and pound sterling have all recently strengthened against the USD. For instance, the EUR has gained 6.6% against the USD since the March low. [Safe-Haven Currency ETFs Shine Amid Market Carnage]
For more information on the USD, visit our U.S. dollar category.
Max Chen contributed to this article.