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South Korean currency
South Korean currency
(Tanuki Photography/Photos.com)

SCOTT BARLOW

Tracking the carnage in emerging markets currencies

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Investors who had moved from developed countries to emerging markets in search of yield got an ugly surprise last month, after sharp declines in exchange rates cut deeply into returns. A close look at the recent performance of the main free-floating emerging-market currencies (ie. not China’s, whiose value closely follows the U.S. dollar) highlights one exchange rate where Canadians should pay attention: the South Korean won.