Beware of the currencies of developing countries (1)

The first quarter of the year went under the currencies of the developing countries. Moreover, the three most rising currencies were precisely from those countries. The best currency for that period was the Azerbaijani manat. After losing more than half of its value in 2015, the currency rose by more than 10% in the first three months of the current year.

Still, investors should be cautious. From Wells Fargo & Co., who made one of the most accurate financial forecasts in the past quarter, investors should be cautious about these currencies.

They do not see the potential for further growth in the currencies of developing countries by the end of the year, according to Nicholas Benenbrook, head of the Fed's monetary policy unit. In his opinion, the Fed's interest rate increase is expected to continue, with stable pace that will add to the currency of the Asian countries.

The South Korean won, the Indonesian rupee and the Thai baht are expected to drop by 2% over the next nine months, according to Wells Fargo forecasts.