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Amazing turns in emerging market currencies over last few sessions

Posted
4/8/2013 9:45:00 AM
By: Emerging Money
Referenced Stocks:

We've seen amazing turns in emerging market currencies over the last few sessions with gap-type moves in ZAR, BRL, PLN, and RUB, even as the dollar holds its ground.

Image Courtesy Benjamin Thompson: http://www.flickr.com/people/beija/

Is this a sign of more carry trades being put on?  It's hard to believe investors are making a call on higher rates by emerging market central banks.

What we can say is that yen weakness equals investment into EM currencies.

This is very supportive to emerging market central banks that are talking now more about easing than hiking.