Emerging markets currencies - extremely hot

Developing countries' currencies are the big winners this year. The Mexican Peso, for example, is the most growing currency since the beginning of the year, marking its strongest growth for over four years.
The emerging currencies reported their best start of a year, which happened only three times this century, and the good times ahead could still be ahead, according to analysts.
Twenty of the 24 currencies of emerging economies have seen a rise since the beginning of the year, driven by a more than 8 per cent appreciation of the Mexican peso and the Polish zloty. Of the four currencies that have declined since the beginning of the year, none have lost more than 1% of their value.
The average growth of a developing countries' currencies since the beginning of the year was at 4.7% or the best performance since 2006. Low financial asset ratings, coupled with returning investors to these markets, could trigger further currency growth, experts say.
Analysts at the Templeton Global Bond Fund are particularly positive about the currencies of India, Mexico and Brazil.
Earlier this year's results for emerging currencies compete with those of 2003, 2006 and 2011.
A key factor in the future performance of developing countries' currencies will be the trajectory of the dollar and whether the Fed will be willing to raise interest rates two or more times by the end of the year.