Barclays: Rising commodities will drive EM currencies stronger

A report from Barclays said that against the backdrop of rising metal and oil prices, the expansion of long positions in the United States could be a good sign for emerging market commodity-related currencies. As far as emerging market currencies are concerned, the report said: We expect a respite for the dollar before the next wave of strength. The bank also said that Latin American FX would outperform the market due to its sensitivity to commodities. For some currencies, such as the rupiah, if the US dollar continues to rise against the rupiah, the Bank Indonesia will most likely raise the benchmark interest rate by 25 basis points by 6.25%.
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