After months spent working to erase their image as emerging markets to avoid, the Iraq crisis and its influence on oil prices are putting the fragile five currencies back on investors’ sell lists.
Turkey’s lira is the most undervalued currency in emerging markets and will strengthen after the “temporary shock” of U.S. stimulus tapering is over, according to Societe Generale SA.
The yuan may weaken following China’s decision to widen the currency’s trading band for the first time since 2007, according to Benoit Anne, the London- based head of emerging markets strategy at Societe Generale SA.
Benoit Anne, head of emerging markets strategy at Societe Generale SA in London, comments on the impact of the European Central Bank’s debt-buying plan on risky assets globally.
The turmoil in Ukraine is giving South Africa’s rand an unlikely role -- that of a refuge from the risk the crisis in eastern Europe will escalate.
The emerging-market currencies rout that had sparked comparisons to the 1997 Asian financial crisis is becoming little more than a fading memory.
"The story has been changing."
- Benoit Anne on Aug 04, 2014
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