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In an environment where the dollar is appreciating in value, similar to the current environment. Is it better to invest in emerging market debt local currencies or emerging market debt hard currency (USD)?

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  • $\begingroup$ If the USD appreciates vis a vis EM currencies then obviously those who invest in local EM currency debt (for ex. ETF's EMLC, LEMB) do poorly compare to those who invest in EM USD denominated debt (ETF's VWOB, EMB, PCY). But recently (late 2017 early 2018) the opposite has been happening ft.com/content/57bc0ec8-0279-11e8-9650-9c0ad2d7c5b5 (FT: "EM Currencies surge on dollar weakness") and nobody knows the future, currencies can turn around at any time. $\endgroup$ – Alex C May 3 '18 at 21:18

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