Forex Trading - Emerging markets forex rally still has legs - Reuters- About: Forex News

NEW YORK (Reuters) - A multiyear rally in some emerging market currencies still has legs even as the likelihood of interest rate hikes in Europe and the United States increases, economists and strategists said. Speakers at the Reuters Investment Outlook Summit in New York this week said a combination of higher commodity prices and higher domestic benchmark rates is likely to support currencies in countries like Brazil and Malaysia. Central banks around the globe are beginning to shift to a rate-raising bias as record energy prices, rising food costs and low rates fuel inflation. Higher rates in the United States and the euro zone will boost the return of dollar and euro-denominated assets — but the tightening won't be fast enough to diminish the appeal of some emerging market currencies. Dollar edges up on Fed's tough talk, Aussie slides - guardian. read more

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