Forex Investment and Currency Trading

EM currencies will likely fluctuate within a wide range into 2009. The rapid ease by advanced economy central banks as well as an increasing number of EM institutions heightens the scope for a continuation of volatility. Currency volatility in EM will likely remain at historically high levels.

Currencies in EM will also demonstrate quite varying returns on a year-to-year basis in 2009, in addition to a wide range of fluctuations. PLN, BRL, CLP, IDR and HUF will likely demonstrate the largest currency returns versus the USD during the course of the year.

Conversely, ARS, RON, TWD, PHP, and SGD will likely slide most meaningfully versus the USD.