A survey of fund managers conducted by Bank of America Merrill Lynch in October and published on Tuesday showed that a large number of investors believe emerging market currencies are undervalued.
Under the pressure of the dollar's strength, in addition to the crises in Turkey and Argentina, emerging market currencies have deteriorated this year and have been hit recently by heavy stock sales, prompting the MSCI Emerging Markets Index to fall 4.5% since the beginning of the year and 7. 4 percent from its peak in March.
Fifty-one percent of investors surveyed said they believed emerging-market currencies were undervalued at the lowest valuation since the survey began, Reuters reported.
More than 20 percent of investors said the dollar was far above its real value in the second highest reading of the US currency.
Emerging-market equities rose 15 percentage points, after hitting their lowest level since March 2016 in a survey last month.
Bank of America experts Merrill Lynch attributed the increase to investors' bet on the dollar's rally.
The survey, which took place from October 5 to 11, and included investors managing investments of about $ 646 billion, showed that investors were more pessimistic about the global economy than they were in November 2008.
