In comparison, the PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP) rose 1.1% year-to-date.

“Investors are in a feeding frenzy for EM assets,” Tim Ash, economist at Standard Bank, said in the article. “As uncertainty has risen over Russia, investors have been squeezed into everything else.”

Emerging market currencies are strengthening on the greater demand for developing market assets – foreign investors would have to convert their currencies to acquire local-currency denominated assets.

Looking at the developing countries, real interest rates are higher and current account deficits have shrunk. Additionally, several central banks are increasing their foreign exchange reserves to buffer potential sell-offs.

For more information on global currencies, visit our currency ETFs category.

Max Chen contributed to this article.

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