**[Barclays: Emerging Market Currencies Expected to Outperform, Significant Room for Capital Inflows]** According to a report by Jinse Finance, Barclays strategists stated that with the unwinding of short positions on the yen, coupled with the attractiveness of assets in developing economies for substantial capital inflows, emerging market currencies are expected to "significantly" outperform major currencies. "Unlike previous instances of yen unwinding, this time the strengthening of the yen is providing support for emerging market assets, particularly emerging market currencies," Barclays strategists Marek Raczko and others wrote in a report. Barclays noted that the weakening of the U.S. dollar has not dampened global risk appetite, and global risk sentiment is currently supporting emerging market currencies. "The shock to confidence in the U.S. dollar is triggering a belated strategic catch-up in the allocation of local currency assets in emerging markets," the bank stated. Barclays believes there is significant room for capital inflows into emerging market portfolios. "If this proves to be the case, even as recent events gradually fade from the short-term narrative, demand for emerging market currencies should persist. Continuing to go long on high-yielding emerging market currencies and commodity-linked emerging market currencies remains valuable," Barclays said. "We expect them to steadily appreciate over time in this environment."