Best Emerging Currencies Lose Steam as Rate-Hike Bets Wane
- While Fed flirts with tapering, investors play EM variations
- Colombia, Poland among next nations to raise rates: Goldman
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Some of this year’s best-performing emerging-market currencies are falling out of favor as traders trim back bets on further interest-rate hikes.
The Brazilian real and the Russian ruble, which outpaced most of their peers in the first half amid policy tightening, have now gone into reverse. The real has slumped about 4.5% since the end of June, more than any other major currency tracked by Bloomberg.