Emerging Markets See Record Inflows Despite Strong Dollar; India Funds Surge

• Emerging market (GEM) funds recorded record inflows of $11 billion this week, marking the third consecutive week of surging investments.
• The DXY (US Dollar Index) has remained range-bound between 96 and 100 since May 2025, indicating GEM inflows are occurring without a significant dollar breakdown.
• China and Taiwan domestic mutual funds experienced record redemptions, contrasting with foreign inflows into GEM strategies.
• India-focused funds saw $340 million in redemptions, but overall inflows into India reached a record $1.4 billion due to GEM fund allocations.
• Commodity-equity funds, especially energy and gold, also saw record inflows, while silver continued to experience outflows.

Why It Matters: Emerging markets are attracting record investments, driven by global liquidity and commodity interest, despite a firm dollar.