Wells Fargo: Commodity currencies power ahead

"The Federal Reserve's decision in early August to recycle principal payments from agency and mortgage bonds into US treasuries reinforced our view of overall strength in commodity-based and emerging market currencies," said Nicholas Bennenbroek, head of currency strategy at Wells Fargo in New York.

Bennenbroek pointed specifically to those central banks that lifted rates as being particular beneficiaries as the rate differentials grew against depressed US bond yields emanating from the Fed's