Are currencies now attractively valued?

Emerging market currencies have come under renewed pressure over the past month and as a result, many now appear quite undervalued. Indeed, of the ten-worst performers since the publication of May’s FOMC minutes, eight now look more attractively valued – when comparing the current real effective exchange rate to the level implied by its ten-year trend – than they did at their low-points in the midst of the financial crisis in 2008.