Emerging market stocks have "lukewarm" prospects if the U.S. dollar sustains its rally, an emerging markets analyst said Monday.
"Unfortunately, we do not believe the dollar rally is over which means the headwind is still there. But we think we're more than two-thirds of the way for that dollar rally to be over," said Andres Garcia-Amaya, a macro research analyst for emerging market equities at JPMorgan Asset Management, which has more than $1.7 trillion in assets under management.
The dollar has climbed nearly 18 percent against a basket of trade-weighted global currencies in the last year. Many U.S. corporations with a large global footprint have blamed disappointing earnings on the U.S. dollar's strength.