EM once again benefits from low US rate expectations
EM currencies were again beneficiaries of falling US rates as weaker US data delay expectations of Fed tightening. As our colleague Gustavo Arteta highlights (see “EM carry is the game, for now,” 4 Apr 2014) higher rates in EM relative to US make EM currencies attractive longs against the dollar, at least in the short term.
Read the full report: UBS