Goldman suggest to short Emerging markets currencies – ?!

They may be right after recent strong run up.  I think they are shorting the currencies or covering their shorts.

The origin of emerging markets currencies weaknesses were due to most central banks following US strategy to devalue their currencies. Besides, US interest rate rise a mere of less than 50 basis points sparked strongest dollar rally which is unreasonable.  Oil prices dropped also cause huge Ringgit drop in past 2 months.

Emerging markets currencies may have a correction at anytime soon. But there is no justification dollar can stay strong at low rates as of now.  Besides, in mid to long term.  The assets of emerging markets are no way to justify a continuous low currency until have a crash in economy.

If Greece is not possible to fail even it suppose to bankrupt.   Emerging markets especially Asean has more foots than dollar.  Goldman is a licensed speculator.

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