- The U.S. Dollar Index breached 20-year highs above 110 as the euro hit parity (1 euro = 1 U.S. dollar) and the yen weakened beyond 140, levels not seen since 1998.
- COVID-19 lockdowns and economic slowdown led to a second round of Chinese yuan declines in the third quarter, and this undercut support for many other EM currencies. Major Latin American currencies generally held up better.
Sources: Bloomberg and Wells Fargo Investment Institute, as of September 30, 2022. QOQ = quarter over quarter. YOY = year over year. The DXY Index measures the value of the U.S. dollar relative to major developed market currencies, notably the euro, the Japanese yen, and the British pound. An index is unmanaged and not available for direct investment. Past performance is no guarantee of future results.