FX Traders Seek Emerging-Market Gems Amid the Wreckage of 2021
- Observers see potential opportunities from Brazil to Hungary
- Yuan, ruble among few developing currencies to gain this year
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Emerging-market currency traders will have to pick their fights carefully for the coming year after a surprisingly strong dollar and rising U.S. Treasury yields steamrolled almost everything in the developing world in 2021.
With investors ramping up expectations for the Federal Reserve and other developed-market central banks to tighten policy, the likes of the Brazilian real and Hungarian forint have been weighed down by inflation and political concerns even as local officials pushed up borrowing costs. The Chinese yuan and Taiwanese dollar have been among the few to stand their ground.