CEW includes hefty tilts toward the Russian ruble 7.2%, Brazilian real 7.1%, South African rand 6.7% and Turkish lira 6.7%.[related_stories]
Moreover, the dovish Fed stance has fueled risk-on appetite and raised investor bets in riskier emerging market assets. EPFR Global data showed $2.9 billion flowing into developing market stocks in the week ended March 23, the most since July. The strong flows has also supported exchange rates for emerging currencies.
Additionally, commodity producing country currencies are enjoying a boost from rebounding crude oil and metals prices. For example, Russia is a large producer and exporter of oil. Brazil also has larger oil and metal reserves. South Africa is also a major gold and precious metals miner.
WisdomTree Emerging Currency Strategy Fund