Merrill Launches FX Indices

Merrill Lynch has set up three EM currency indices by region for Asia, EMEA and LatAm, to track the FX movements in emerging markets. The three indexes combined make up the ML Global Emerging Market FX index, which is designed to replicate a diversified exposure to USD in EM and provide a look at EM growth and asset performances. Daniel Tenengauzer, global currency strategy research head at Merrill, says fundamental analysis using the index shows EM currencies are still cheap.