On a related note,
emerging market currency appreciation can be both a great source of returns and diversification.
Not exact matches
Over the longer term, we expect increasing productivity should also result in a broad
appreciation in
emerging -
market currencies.
You'll notice that many of the YTD returns are different when adjusted for local
currency appreciation or depreciation and the relative devaluation of various
emerging market currencies is another theme that has come to the fore in 2014.
Depending on which countries you include in the analysis, the expected real exchange rate
appreciation in a basket of
emerging market currencies should be about 50 bps annually.
Total Return from
currency appreciation, implied yields of
Emerging Markets currencies, and income generated from U.S. money
market collateral securities
Just as
emerging market downturns tend to coincide with periods of weakening EM
currencies, bull
markets in
emerging markets are inclined to feature corresponding
appreciation in EM
currencies.