Emerging Market Exchange Rates: Cheap or Value Traps? (Capital Group)

• Emerging market (EM) currencies have weakened significantly over the past decade and are now generally undervalued according to Capital Group’s in-house fundamental-based FX valuation model.
• That said, a broad-based rally in EM FX is unlikely given the current global growth outlook and a decelerating EM credit cycle. 
• Low structural growth including rising debt burdens and low productivity are also a secular EM FX headwind. 
• Capital Group sees value in select EM currencies including the Mexican peso and the Russian ruble. READ MORE

Similar Posts:

• Analysts Favor Currencies Like the Mexican Peso, Won and Zloty (WSJ)
• The End of the Emerging-Market Bounce? (Man Group)
• Emerging Market Stocks Enter a Correction (Bloomberg)
• Exchange Rate Predictability in Emerging Markets (Amundi AM)
• Structural Change in Emerging Markets: 4 Key Forces to Understand (Wellington Management)
• Russian Stocks and the Ruble to Remain Under Pressure (Capital Economics)
• CLSA Equity Strategist Says India is the Best BRICs Investment Destination (LM)
• 2018 Emerging Markets Outlook (Nikko Asset Management)
• The Mexican Peso as a US Election Barometer (Bloomberg)
• 3 Ways to Structure an Emerging Markets Portfolio (Barron’s)