While global banks and major funds still see opportunity in emerging markets, some investors are starting to tread cautiously. The expectation of higher US interest rates and the yield on the 10-year US treasury note holding above 3% have strengthened the dollar and eroded some demand for riskier assets, resulting in emerging market currencies taking a knock. Most emerging market currencies have slid over the past month, according to Bloomberg data. A financial crisis in Argentina has seen the country raise interest rates to 40% to stabilise the Argentine peso, which has plummeted by more than 18% this month and sent the country to the IMF for help. Over the same period, the Turkish lira has fallen by 10% as a result of President Recep Tayyip Erdogan's pledge to tighten control on the economy after snap elections in June. The Mexican peso and Brazilian real are down 9.2% and 9.8%, respectively. The rand has performed better than other emerging-market currencies, losing just 6.3% of ...
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