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According to the latest Reuters poll of market strategists, the Emerging Market (EM) currencies are forecast to weaken over the next three to six-month outlook amid US Presidential election jitters and deteriorating regional economic outlook.

Although they are expected to rise about 2% on average in a year, courtesy of the broad US dollar weakness.

Key findings

“The Chinese yuan, the most actively traded emerging market currency but also tightly managed by its local authorities, was predicted to edge up about 1% to 6.70 per dollar in a year from now.”

“South Africa’s rand, which has been on a rollercoaster ride since April, is expected to gain nearly 0.5% to 16.5 per dollar in 12 months. “

“The lira, which has plunged nearly 30% this year, is set to depreciate 3.2% more to 8.0 per dollar in the next 12 months.”

“The Russian rouble, which has lost over 25% of its value against the dollar this year will gain over 9.0% to 71.0 per dollar by this time next year.”