The chart above shows the trade-weighted dollar DXY against the JP Morgan Emerging Markets Currency Index at 1-hour intervals since the November 8 election. The emerging market (EM) index clearly trades with the overall trade-weighted dollar, but it jumped to a higher track in early February.

The strength of EM therefore is not simply a matter of dollar weakness. This may be amplified by carry trades but non-carry-trade currencies have done very well, especially KRW and TWD.

As I noted last week, EM (especially Asian) currency vols have also fallen sharply.