Brian Aaron K701_ Miller

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How do emerging market equities influence their currencies?

Emerging market stock rallies attract foreign capital, strengthening local currencies. For example, strong equity inflows into Brazil support BRL. Institutions model capital flows between equities and forex. Retail traders can monitor ETF flows as signals. Benefits: equity performance reflects investor confidence. Risks: sudden outflows during crises trigger sharp devaluations. Emerging market forex is tightly tied to equity flows, making cross-market awareness essential.