Does emerging market outperformance depend on the falling dollar?

The fall in US dollar is something that goes hand in hand with an improvement in confidence.

Usually what we have been seeing for the last year or so was that whenever there was concern about global outlook then US dollar goes up in value. And when confidence builds regarding the global economy, demand for US dollar goes down and the US dollar falls.

That in turn also helps commodity prices such as the oil price and other commodities which in turn is the positive for emerging markets.

So the renewed upswing in share markets and the renewed downswing in the US dollar and likewise the renewed upswing in commodity prices they all go hand in hand. They are just all indicators, of a return to investor confidence.