Several EM currencies expected to remain weak

USD-ZAR moving towards 13, USD-TRY almost back at 2.80 - USD-BRL obviously had to keep pace and only just missed the 3.50 mark yesterday. Emerging markets curren-cies were unable to keep up with the USD yesterday. And it is no surprise that the curren-cies of the more vulnerable countries came under pressure. 

After all, it is not only FX market participants who will increasingly wonder whether these countries might be in trouble again once the Fed starts to hike rates. Back in June 2013, a hint of potential US rate hikes was enough to make some EM currencies go on a roller-coaster ride. And those countries have not yet been able to get their weakness under control - they are still running large current-account deficits. Commerzbank expects the TRY, the ZAR and the BRL to remain weak in the coming days.