Environment for EM FX unlikely to improve significantly: Barclays

Quotes from Barclays Capital:

-The environment for EM FX is unlikely to improve significantly (especially versus the USD), although we do not believe that these currencies will fall significantly either. The fundamentals of emerging markets have improved, perhaps nowhere more so than in Asia, where lower oil prices are providing a further boon to economies.

-This bodes well for Asia FX and it unsurprising, therefore, that these currencies have outperformed year to date. Although oil prices have rebounded in recent weeks, our commodities team is forecasting a low average of USD44/bbl for Brent crude this year.

-Moreover, positive idiosyncratic stories in India and, to a lesser extent, Indonesia continue to put their currencies in good stead to withstand pressure from a stronger USD.