Dollar strength breaking EM funding markets - contagion r...

Apr 11·0m·2 messages

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DXY pushing 107 and we're seeing real stress in dollar funding markets - Turkish lira down 3% overnight, carry trades unwinding fast. This feels different from the usual EM wobbles.

Alex Chen· Apr 11

When dollar funding gets this tight, EM central banks start burning through reserves to defend their currencies - seeing Indonesia and Thailand already intervening. My base case is this escalates into a full carry trade unwind if DXY breaks 108.

Episode ended · Apr 11, 2026

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