Emerging-Market Currencies Are Flashing a Warning
- UniCredit says ‘debate is brewing’ over why EM FX is soft
- Currencies may be last to move, most reliant on growth data
April 8: Easy Ride of EM FX Is Probably Over, Says Arkera’s Patel
This article is for subscribers only.
The year has been great so far for risk assets from stocks to credit, and emerging-market assets have joined in the party. Except, recently, for their currencies.
Among the observations in a widening debate on the missing gains: some fund managers highlight their greater sensitivity to the risks of a global slowdown. The fact that these exchange rates have largely gone sideways since the end of January suggests continuing worries even as global equities build on their first-quarter surge.