J.P. Morgan said that if the US imposes a ban on diesel exports, it may widen the gap between the US and the rest of the world in terms of diesel supply and price, which in turn will have an impact on the exchange rates of many countries. Strategists, including Mira Chandan, wrote in the report: “Direct importers were the first to be hit; developed markets are less vulnerable than emerging markets.” Among developed markets, the pound and the euro are most affected by this risk, while Latin American currencies have the highest risk exposure globally. The strategist said, “If the US imposes a ban on diesel exports for a long time, the spillover effects will spread to countries with high diesel consumption intensity and high import dependency.” This type of currency also includes Australian and New Zealand currencies in developed markets, as well as South African rand and Philippine pesos in emerging markets.

J.P. Morgan said that if the US imposes a ban on diesel exports, it may widen the gap between the US and the rest of the world in terms of diesel supply and price, which in turn will have an impact on the exchange rates of many countries. Strategists, including Mira Chandan, wrote in the report: “Direct importers were the first to be hit; developed markets are less vulnerable than emerging markets.” Among developed markets, the pound and the euro are most affected by this risk, while Latin American currencies have the highest risk exposure globally. The strategist said, “If the US imposes a ban on diesel exports for a long time, the spillover effects will spread to countries with high diesel consumption intensity and high import dependency.” This type of currency also includes Australian and New Zealand currencies in developed markets, as well as South African rand and Philippine pesos in emerging markets.