The concept of 'American exceptionalism' is fading, and investors are turning to local currency Bonds in Emerging Markets.

The USD has fallen below the 98 mark for the first time since March 2022, dropping over 1% during the day. Against the backdrop of the fading 'American exceptionalism' and the deterioration of dollar credit, global investors are shifting towards local currency Bonds in Emerging Markets. Goldman Sachs Analyst Tellot noted in a Research Report that local government Bond issuance in Emerging Markets is expected to continue to surpass dollar Bonds. In light of concerns about economic recession in the USA and globally, local currency Bonds in Emerging Markets are likely to outperform other types of Emerging Markets Assets.