Greg Gibbs, Director at Amplifying Global FX Capital, suggests that looking at the performance of emerging market currencies, they have been undermined by their links to the weaker major currencies, a range of political events increasing uncertainty in a handful of cases and some specific economic weakness.
“However, a range of commodity currencies have performed well and some emerging markets have outshone their peers. The overall gains in the USD against EM currencies are much less related to renewed confidence in the US economy or Fed rate hikes.
Emerging European currencies have broadly been dragged back recently by a weaker EUR. TRY has been relatively weak, declining from late September, RUB was strengthening until last week.”