US dollar’s structural weakness could benefit Asian emerging markets

As Asian emerging markets seek to bounce back from the Covid-19 pandemic, they could receive support from an unexpected area: a structurally weaker US dollar. A weaker US dollar would help reduce the foreign exchange debt stock and service burden for those South and South-East Asian economies which have increased USD debt over the past decade. A more attractive exchange rate against the US dollar could also help emerging markets attract capital inflows, which have been affected by the drop in global trade