Vanguard Group sees opportunity for EM currencies as dollar extends rise

The rupee and Indonesia's rupiah are the worst currencies in Asia this year, weighed by concerns over fiscal deficits and inflation

A potential extension of the dollar’s gains against emerging-market currencies in the next few months presents long-term investment opportunities in India, Indonesia and Mexico, according to Vanguard Group Inc.

Emerging Asia is the most attractive region with the biggest returns seen in India and Indonesia, said Jonathan Lemco, a senior investment strategist based in Malvern, Pennsylvania. Within Latin America, “Mexico may be the number one investor darling in the world right now since the new Nafta deal was signed and the market is less worried about its president-elect," he said.

Investors should raise their long-term exposure to emerging markets, Lemco said. The