As pendulum swings

As the pendulum accelerated in recent weeks, emerging market currencies gained attention from the financial com- munity. Currencies in Central Europe have been the worst per- formers in the emerging world so far in February, having followed the euro down against the dollar. Within the context of the upcoming rate rise from U.S. Federal Reserve in the background, the battered Turkish lira and Russian rouble strengthened against major currencies.

The Turkish lira has weakened by 22 percent against the U.S. dollar over the past 12 months, and it has tumbled 5.6% so far this year. Before making a change in year-end calls, analysts began to exercise the new scenarios.