Five reasons to snap up EM currencies

Emerging market currencies fell sharply during September after holding up pretty well through August. Developing market exchange rates even lost ground against the euro, despite Europe being the focus of market fears. Increased risk aversion and rising pessimism about the global economy drove investors to cut positions, and the lack of market depth exacerbated falls in emerging currencies. Have exchange rates now moved far enough to be a clear buy? From a longer-term standpoint we think the answer is yes because the structural arguments for medium-term emerging currency outperformance...