Dollar strength, rising US Treasury yields hurts emerging markets

Market players say the Dollar index is the new fear indicator for the market

The Indian markets fell 2 per cent last week in what was their worst weekly setback in two months. But, India was not the only market that came under selling pressure. In fact, the entire emerging markets (EM) pack saw turbulence as a stronger dollar and rising US Treasury yields prompted investors to exit risky assets and move into safe havens. The Dollar index, a measure for the performance of the US dollar against six key currencies, climbed to its highest level in 2018 on Friday. Meanwhile, EM currencies posted their biggest weekly loss in 18 months, aggravating