So far in 2022, we have seen a broad rebound in most of these EM currencies, many in excess of 3% in less than 3 weeks - including the Brazilian real, South African rand and Hungarian forint. Now, while part of this recovery has to do with the broad weakness we’ve seen in the US dollar, we’ve also seen a general rebound in risk appetite, which has helped support these higher risk currencies.
The US dollar has depreciated against most of its peers so far this year. The dollar is currently trading as the worst performer in the G10 year-to-date, followed closely by the Australian and New Zealand dollars.