Emerging Market Currencies Continue to Rally

The rally in emerging-market currencies continued Wednesday, propelling the South Korean won to its strongest level in more than five years against the dollar.  The won surged over 1% Wednesday to hit 1,038.3 per dollar, its strongest level since Aug. 2008.  "A huge current-account surplus, strong growth, and now falling unemployment are the recipe for this move," said Kit Juckes, a macro strategist at Société Générale in London.  Against a backdrop of falling U.S. Treasury yields, as expectations of early rate rises from the Federal Reserve recede, emerging-market currencies have performed strongly of late.

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-Igor P Purlantov