{"id":53074,"date":"2020-05-22T01:00:23","date_gmt":"2020-05-22T08:00:23","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=53074"},"modified":"2020-05-22T01:10:33","modified_gmt":"2020-05-22T08:10:33","slug":"emerging-currencies-turkish-lira-south-african-rand-mexican-peso","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2020\/05\/22\/emerging-currencies-turkish-lira-south-african-rand-mexican-peso\/","title":{"rendered":"Emerging Currencies: Turkish Lira, South African Rand, Mexican Peso"},"content":{"rendered":"\n

When a financial market gets expensive, traders and investors start broadening their search for low-price opportunities. As an overbought U.S. stock market<\/a> hits the late stages of an impressive rebound from March’s crash, its stock market looks expensive. Meanwhile, “emerging market” currencies like the Turkish lira, South African rand, and the Mexican have barely started a recovery from the crash in global financial markets. These currencies are finally emerging from massive sell-offs that started in March and may have finally ended this month with nearly synchronized tests and breaks of key support levels.<\/p>\n\n\n\n

Suddenly, these emerging currencies, and their constituent financial markets, look cheap relative to markets which are fully pricing in an imminent economic recovery. By comparison, investors and traders are still clinging to the idea that the economies in countries like Turkey, South Africa, and Mexico face very dire prospects. As sentiment turns around, a lot of room exists for recovery in currency values. <\/p>\n\n\n\n

Global central banks have taken historic steps to underwrite the response to the coronavirus pandemic and are encouraging risk-taking on a grand scale. The Turkish lira, the South African rand, and the Mexican peso each look like prime candidates to sop up some central bank largesse.<\/p>\n\n\n\n