Reported 2 months ago
Emerging market currencies recorded their best performance of the year in the wake of a significant selloff as fears of a US economic downturn eased. The MSCI EM currency index rose by 0.7%, with Brazil’s real leading the gains after inflation data raised prospects for interest rate hikes. Despite ongoing concerns regarding global carry trades, the stability of the Japanese yen and a weaker dollar encouraged investment into higher-yielding currencies, signaling growing risk appetite among investors.
Source: YAHOO