RIO DE JANEIRO, BRAZIL - Currencies such as the Mexico's peso, the Brazilian real, and Hungary's forint stand out amid interest rate hikes by Central Banks.
The policies of Central Banks unwilling to take risks with inflation will dictate the winners among emerging market currencies. The key lies in identifying those who are ready to turn rhetoric into action.
Recent winners include the Mexican peso, the Brazilian real and Hungary's forint, currencies whose central banks raised interest rates this month, protecting their relative yield advantage against accelerating prices and the prospect of rising rates in the United States . . .