• Home
  • Home
  • Daily Papers
  • Awards / Events
  • GlobalCapital
  • Free Trial
Close

Copying and distributing are prohibited without permission of the publisher.

Watermark
  • Print

What emerging market currencies to buy

By Emerging Markets Editorial Team
20 May 2013

Although the environment remains "challenging" for emerging market foreign exchange, there are some buying opportunities, according to strategists

Latin American foreign exchange leads the way when it comes to currencies to be bullish about, at least in the opinion of Societe Generale strategists.

In a market note, they said they turned "tactically bullish" on the Brazilian real (BRL) as the authorities are not likely to allow it to weaken too much.

The strategists noted that the Mexican peso (MXN) could also "start looking attractive" after it went through a "mini-correction" recently.

In emerging Europe, the Turkish lira (TRY) is "the most attractive currency" right now.

"The authorities are likely to lean against the wind, which means that the appreciation potential will be fairly limited. However, the TRY offers a very attractive carry and should be well supported by the capital flows that aim at capturing the strong fundamental story," the Societe Generale strategists wrote in a market note.

 More from Emergingmarkets.org
 'Unloved' EM equities 'one catalyst away from rally'
 Sell in May and go away? Maybe not this year
 Register for free to receive the weekly newsletter

Last week, Moody's became the second rating agency to raise Turkey's rating to investment grade.

Analysts said this meant that more money would pour into Turkish assets over the medium term as some institutional investors who had stayed away because the country was still rated speculative grade could now boost their investments there.

The Societe Generale strategists are also bullish on the currencies of small frontier market countries, such as Serbia or Egypt.

But they maintain their bearish bias towards emerging market currencies in general, as central banks are in a dovish mood and the eurozone crisis could still spill over, especially in emerging Europe.

- Follow us on twitter @emrgingmarkets

By Emerging Markets Editorial Team
20 May 2013
  • HOME
  • GLOBALMARKETS
  • Latest news from GlobalMarkets

    1. EM debt pressures build as IMF calls for ‘early’ action on restructuring

      15 Oct 2020
    2. Post-Covid world will demand ‘new more humane’ capitalism

      15 Oct 2020
    3. IADB to roll out hurricane clauses as small state pleas gain traction

      15 Oct 2020
    4. IMF will need Bank’s help to fulfil climate ambition

      15 Oct 2020
    5. Biden victory to boost Asia but China tensions to remain

      15 Oct 2020
  • Most viewed: GlobalMarkets

    1. EBRD marks out green goals and Africa expansion for next five years

  • Print
  • Latest news from GlobalMarkets

    1. EM debt pressures build as IMF calls for ‘early’ action on restructuring

      15 Oct 2020
    2. Post-Covid world will demand ‘new more humane’ capitalism

      15 Oct 2020
    3. IADB to roll out hurricane clauses as small state pleas gain traction

      15 Oct 2020
    4. IMF will need Bank’s help to fulfil climate ambition

      15 Oct 2020
    5. Biden victory to boost Asia but China tensions to remain

      15 Oct 2020
  • Most viewed: GlobalMarkets

    1. EBRD marks out green goals and Africa expansion for next five years

Further reading

  • Corporate bond investors 'freaking out' at ECB amid 'unhealthy' market

    High Grade

    Corporate bond investors 'freaking out' at ECB amid 'unhealthy' market

  • NCB sells AT1, market anticipates govvie deal

    Middle East

    NCB sells AT1, market anticipates govvie deal

  • Aircraft lessors crowd to market after monster rally

    Corporate Bonds

    Aircraft lessors crowd to market after monster rally

  • People moves in brief: January 21, 2021

    People News

    People moves in brief: January 21, 2021

Global Capital

All material subject to strictly enforced copyright laws. © 2020 Euromoney Institutional Investor PLC group

About Us

  • About us
  • Contact us
  • Modern Slavery Act Transparency Statement

Connect with us

  • LinkedIn
  • @GlobalCapNews

Services

  • Advertise
  • Our partners
  • RSS
  • GlobalCapital Events
  • Events calendar
  • Social community

My Account

  • Renew
  • Subscribe
  • FAQ
  • Feedback
  • Terms and Conditions
  • Privacy Policy
  • Cookies

Quick Links

  • All League Tables
  • Bank Profiles
  • Bond Comments
  • Deals & Deal Pipelines
  • Polls and Awards
  • GlobalCapital Archive
  • Special Reports Archive