Emerging-market currencies are diverging by the most in two years as investors increasingly focus on the strength of underlying economies in anticipation of the Federal Reserve paring its unprecedented monetary stimulus.
The five best-performing developing currencies since June gained an average 4.4 percent as of yesterday, led by South Korea’s won and Poland’s zloty, data compiled by Bloomberg show. That compares with a 6.8 percent loss for the worst performers, such as India’s rupee and Indonesia’s rupiah. The gap in performance hasn’t been so wide since 2011.
