Finding real hawks is key to picking EM winners ...Qatar

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Finding real hawks is key to picking EM winners
The race to top of the emerging-market currency pack will be determined by central banks that are taking no chances with inflation. The trick is singling out those ready to turn rhetoric into action. Recent winners are the Mexican peso, Brazilian real and Hungary’s forint – currencies whose central banks raised rates this month, protecting their relative yield advantage against accelerating prices and the prospect of rising US rates. Attention now turns to Colombia, Turkey and Poland, where policy makers are due to set benchmark borrowing costs over the coming weeks. Last week’s tightening drive jolted markets, with a gauge of currencies in the developing world rebounding from its biggest f

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