In the last few weeks, investors have waded cautiously back into emerging markets. Spurred in part by the Obama economic stimulus plan and pending US investment in Citigroup, investors have evidently been persuaded to take on more risk. The Japanese Yen, accordingly, has already begun to beat a retreat from the highs it reached earlier this year. If this trend continues, the US Dollar could become the next “victim.” On the other side of the equation are currencies such as the South African Rand, which have benefited from a renewed interest in yield, as well as increased monetary stability driven by lower inflation. Ultimately, this movement of capital can just as easily reverse itself, which it no doubt will at the next economic hiccup. Bloomberg News reports:

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