T Rowe Price scales back EM currency exposure

Stephane Fertat, portfolio specialist for fixed income at T Rowe Price, has revealed the group's global bond funds have cut exposure to a number of emerging market currencies in recent months.

The firm's managers have sold down positions in the Indian rupee, Thai baht, Russian ruble and Malaysian ringgit in the group's global bond portfolios. The moves came during a difficult period for emerging market currencies, which on average fell 3.56% in May. In mid-June, some emerging currencies then hit record lows and most suffered sharp falls, after the US Federal Reserve said it expects to start withdrawing stimulus measures later in the year. Previously the T Rowe Price global bond funds had 1% invested in the Indian rupee. However, this position was removed in mid-June, as ...