QE2 causes emerging market currencies to strengthen

The effect of QE2 on emerging market currencies is causing the currencies of hot investment countries like Peru and Brazil to strengthen.  Who said that QE2 wouldn't start a currency war?  Via Bloomberg:
U.S. policy makers meeting today and tomorrow will probably announce a plan to purchase at least $500 billion of long-term securities, according to economists surveyed by Bloomberg News. Five interest rate increases this year in Peru, as well as the potential for higher prices for its commodity exports, make the country a magnet for investment as the U.S. boosts the money supply, said Bertrand Delgado, an economist at Roubini Global Economics LLC in New York.

“Managers want a larger part of their portfolios invested in” fast-growing Latin American countries, Delgado said.

Gross domestic product in Peru, the world’s second-biggest copper exporter, may rise 8 percent this year, according to the central bank.
More

Roubini: Peru will grow 8% this year
Peruvian Nuevo Sol is one of the most stable currencies in Latin America

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