Emerging market currencies are sharply declining

Trump's latest measures to deepen protectionism have triggered further sell-offs in emerging markets.
The currencies and indices of emerging markets are turning to their biggest losses since September 2015. The Hungarian forint has fallen to a historic bottom after the country's central bank has confirmed its not particularly aggressive monetary policy.
Yuan fell on Thursday for the tenth consecutive day against the dollar, which was his longest series of declines since March of 2014.
A cheap yuan is part of China's policy to resist US blows in the ever-worsening trade war between the two super-economic powers.
Chinese yuan is cheaper also because the central bank of China refrains from raising interest rates after the Fed raised interest rates by 25 basis points.

Copper - the first victim of the trade war between the US and China?

Last week, the most serious sale took place in two years, as investors were increasingly concerned about the prospects for a trade war. After this sale, the metals seem to have calmed down. However, copper along with other non-noble metals fell again at the auction in Shanghai this week.
This decline seems to have occurred because of the events of Friday. China finally responded to Trump's tariffs referring to section 232 on steel and aluminum imports, announcing plans to introduce reverse tariffs of up to $3 billion on US goods, including seamless steel pipes and aluminum scrap, which threatens to slow global economic growth.
After this announcement, the price of copper fell 1.15%, and non-precious metals showed the worst weekly decline since early February. Quotes fell below the level of the September consolidation, breaking the level of the 200-period moving average, signaling a target at 2.83.

The dollar is a warning of a serious economic slowdown

The value of the dollar has yet to be lowered, according to some analysts who believe that there is still room for adjustment before the dollar gets better. And this downturn can be predetermined by fears for global economic recovery, analysts say.
President Trump's tariffs risk launching a global trade war that could hurt global growth, market observers say.
The dollar lost 7 percent against the yen from its peak on January 8 this year. This is interpreted as an annual loss of 34%, according to Bloomberg.
At a time when the world economy is just beginning to emerge from the crisis, one thing that could hurt this cycle is a trade war, and we are in the first phase of it, said Boris Schlossberg, Managing Director of BK Asset Management. According to him, the yen reflects this threat better, faster and stronger than other instruments.
The IMF head, Christine Lagarde, also warned of the negative impact of a potential trade war. If we witness a trade war, it will affect trade volumes and reduce global growth, Lagarde said.
Historically, the dollar has weakened as a result of fears of protectionism and trade wars. When former presidents like George Bush and Bill Clinton presented a wide range of import taxes in 2002 and 1995, the markets were selling the dollar as its value declined by 15% overall.