The biggest dichotomy was seen in Poland’s zloty, where real-money flows rose to near the highest in more than 18 months as indexed flows for hedge funds decreased to the lowest level this year. India’s rupee and South Korea’s won had the next largest differentials between hedge fund outflows and real money inflows relative to past trading. Hedge funds posted outflows from the Mexican peso and slightly increased flows in the Turkish lira. Taiwan’s dollar, Peru’s sol and South Africa’s rand were rare exceptions where hedge funds bulked up and real money fled. Low equity volatility and bond spreads at multi-year lows have become a warning sign for some emerging-market investors.

Source: The Edge Markets March 14, 2017 03:56 UTC