NAIROBI, Kenya, July 13 – Standard Chartered has projected a weakening of the US dollar over the next 6 to 12 months, a development it says could unlock new investment opportunities in emerging markets, including Africa.
In its Global Market Outlook for the second half of 2025, the bank highlights shifting global macroeconomic conditions, with resilient consumption and fiscal stimulus supporting US growth, despite uncertainties surrounding trade policy.
Europe is benefiting from fiscal easing, while China’s outlook is stabilising following targeted economic stimulus and improving consumer demand. Growth in India and the ASEAN region remains strong.
The report suggests that a softer dollar could benefit emerging market assets, which have historically shown stronger performance under such conditions.
The bank has accordingly upgraded its outlook on Asia (excluding Japan) equities and emerging market local-currency bonds to ‘Overweight’.
“Emerging market investors are well-positioned to capitalise on a period of weaker dollar dynamics and shifting global trade flows,” said Manpreet Gill, Chief Investment Officer for Africa, the Middle East, and Europe at Standard Chartered.
“Asset classes such as EM bonds and non-US equities offer potential for income generation and portfolio resilience.”
The report maintains a preference for USD-denominated bonds in the 5–7-year maturity range, citing favourable risk-return profiles as interest rates ease.
Meanwhile, developed market investment-grade corporate bonds were downgraded to ‘Underweight’ due to compressed yield spreads and reduced investor inflows.
The bank also flagged gold as a key allocation for investors, supported by central bank demand and its role as a hedge during periods of market uncertainty.
The outlook comes at a time when global investors are rebalancing portfolios in response to diverging monetary policy paths, easing inflation, and growing interest in alternative assets.
For Africa, the report signals potential opportunities for capital inflows, particularly in local bond markets and listed equities.
