Emerging ket UBS View See table for current exchange rates and CIO forecasts Recommendations ; ; ; Tactical (6 months) e We continue to like emerging market (EM) currencies over a medium term horizon. We think monetary ; . licies of major central banks will remain loose for longer whereas the easing cycle in several emergin * Several FIM curmericies look aitractive at po kets | J his should j g j Ing cy ging current levels and we advise investors to mar ets is over. This shou support EM currencies re ative to major currencies (USD, EUR, and JPY). Long keep existing holdings for further gains term investors should therefore diversify into EM currencies using surplus exposure to these currencies. while increasing exposure to our e In Europe, both the Polish zloty (PLN) and the Turkish lira (TRY) have supportive fundamentals in the preferred EM currencies (KRW, SGD, MYR, long-term and could benefit from inflows into their fixed-income market which offers attractive yield MXN, TRY, PLN, ZAR), using the JPY, USD, relative to G4 currencies. Due to structural reasons we remain cautious on the Hungarian forint (HUF). and EUR for funding. ¢ The South African rand (ZAR) is currently attractively valued, but Investors should be willing and able to Strategic (1 to 2 years) tolerate bouts of volatility due to the current strikes and a cyclical slowdown of the economy. e We recommend EM currencies backed by ¢ In Asia, we like the Korean won (KRW), the Singaporean dollar (SGD) and the Malaysian ringgit (MYR) as stable fundamentals as a strategy to all three countries have a strong economy and should benefit from increasing liquidity and a recovering diversify currency exposure. : e Our favorites include the Chilean peso, Chinese economy. Mexi Czech k Polish zlot ¢ In Latin America, the Mexican peso (MXN) remains attractively valued, despite its recent rally. ene lt PES: SZ ere: Pe) 2 Chinese renminbi, Korean won, Malaysian A Positive scenario > 5% outperformance of EM FX against G