Reuters reports that investment bank JPMorgan recommended selling emerging market currencies.

“We take another step down in our EM risk allocation, moving EM FX to underweight” the bank’s analysts said.

They cited the likelihood of an extended period of EM growth underperformance versus developed markets like the United States, renewed “idiosyncratic risks in large EMs” as well as rising COVID cases and slower vaccination programmes in developing economies.

“Having cut CNY and RUB overweights last week, and CEE exposure before that, our GBI-EM Model Portfolio is now underweight EM FX,” the bank said.