Mitsubishi UFJ: Emerging market currencies will benefit from easing geopolitical tensions.

Derek Halpenny of Mitsubishi UFJ Financial Group stated in a report that if tensions between the United States and Iran ease, emerging market currencies may benefit. The US and Iran announced progress in nuclear negotiations on Tuesday. "If this does indeed lead to a thaw in relations, it will be another factor that could help support global market sentiment and enhance the prospects for continued strong performance of emerging market currencies," he said. He also mentioned that the global economic outlook is quite positive, as President Trump is unlikely to impose tariffs this year and major economies are planning fiscal stimulus measures. Mitsubishi UFJ Financial Group's favorite currencies this year include the South African Rand and the Chilean Peso, with an expected increase of close to 7% by year-end. The bank also predicts that the Malaysian Ringgit and the South Korean Won will rise by 5%.