Since the US Fed announced last May to cut back its exceptionally expansive monetary policy, emerging markets (EM) currencies have substantially depreciated....
Sign up for our weekly Newsletter and receive the latest ETF and ETC news. Click here to register for your free copy
Mikio Kumada, Global Strategist at LGT Capital Management
The comparatively massive sell-off caused memories of the 1997/98 Asian currency crisis to flare up. However, these worries are not justified from a fundamental point of view as most EMs are much better positioned today than they used to be at that time. Nevertheless, emerging markets still face problems but of different nature, thus, some devaluations appear reasonable to some extent at this point in time.
Source: ETFWorld – LGT Capital Management
Subscribe to Our Newsletter
