Emerging Market Stocks Poised to Gain as Strong-Dollar Trade Falters

When the Federal Reserve appears boxed in on inflation, long-term yields can jump and the strong-dollar trade may wobble. In this scenario, a softer U.S. currency often pushes attention toward emerging market equities, where local earnings and dividends are not priced in dollars.

Coca-Cola Içecek Anonim Sirketi (IBSE:CCOLA) is one such company that could benefit from a weaker dollar. The Turkish beverage producer generates about TRY196.2b in non-alcoholic beverage revenue, with TRY82.4b coming from Turkey and TRY114.4b from international markets.

Another potential beneficiary is Três Tentos Agroindustrial S/A (BOVESPA:TTEN3), a Brazilian agribusiness group that supplies farm inputs, processes grains, and exports agricultural products worldwide. The company generates around R$7.96b from Industry, R$6.61b from Grain, and R$3.71b from Inputs segments.

Minerva (BOVESPA:BEEF3), a Brazilian meat processor that raises, slaughters, and sells beef and other animal proteins across South America and export markets, also fits the weaker dollar theme. Its South American beef exports provide direct exposure to global protein demand priced outside the U.S. market.