Beware of the currencies of developing countries (2)

The Indian Rupee and the Philippine Peso are also expected to fall, albeit at a slower pace, due to the sentiment to raise interest rates from their central banks.

The Bloomberg-JPMorgan Asia Dollar Index, which tracks the 10 Asian currencies without the yen, rose by 2.5 percent for the three months to March, or the most for the quarter to September 2010.

Among the factors behind the strong performance of Asian currencies in the first quarter was the strong performance of local markets and the US dollar correction period.

However, the from the bank does not expect the growth rates of the first three months of the year to remain in the future, with even lower indexes possible. This is another factor that will most likely bring downward pressure on the Asian currencies.