Emerging currencies tipped to fall
Emerging market currencies are tipped for a fall following the sell-offs of May and late September, analysts have said.
Elsewhere in the markets, the South Korean won recovered after Monday's North Korean nuclear test, gaining 0.2 per cent against the dollar, trading at 958.20 by 15:36 local time.
Investors have moved out of developing-world economies as they sought to minimise their exposure in the face of falling commodity prices and a possible debt-default in Ecuador. Political problems in Hungary, Poland and Brazil also triggered sell-offs of volatile currencies such as the Turkish lira, Brazilian real, Icelandic Krona and South African rand.
"Emerging market currencies are more risky than in previous months,"
chief foreign exchange dealer at Global Forex Trading Kurt Hoeksema told Forbes.
"People have been pulling money out of emerging market investments and moving it into US treasurys. This is evidenced in...a surge in US treasury bonds."
October would be a crucial month for emerging currencies as indicators provide a prediction of inflationary expectations and economic expectations, said analysts.
Emerging currencies slip