Source: Bloomberg

The Latin American commodity currencies gave ground as the US dollar rose with higher interest rates in the past week. The Asian currencies were far more resilient. The Latin American currency recovery was a global reflation story. Commodity prices probably have done all the recovery they need to. Asia is a world trade recovery story. An outlier is TRY, weaker due to the Erdogan government’s attempt to keep rates low before the country’s April 15 constitutional referendum.