Barclays: Emerging market currencies are expected to outperform, with significant potential for fund inflows.

Barclays strategist stated that as the short positions on the Japanese yen are unwound, coupled with the attractiveness of assets in developing economies for large capital inflows, emerging market currencies are expected to "significantly" outperform major currencies. "Unlike previous unwinding of the yen, this time the strength of the yen is providing support for emerging market assets, especially emerging market currencies," wrote Barclays strategist Marek Raczko and others in a report.