Rising tide.

As hard currencies pour into the region's economies looking for upside, the money flowing in is pushing exchange rates higher--up 27% over the past two years, according to Citigroup. For investors who hold their shares in Brazilian reals or Colombian pesos, that's an extra double-digit gain on top of roaring stock markets, largely driven by massive amounts of raw materials exporting, rising foreign trade, and domestic economic health.

But, analysts point out, much of the gains made recently came just after the huge emerging market sell-off that affected share prices around the world. While Argentina has been weak by comparison and Chile and Mexico trade within expected ranges, it's Brazil and Colombia that have seen the biggest rise in currencies. Watch for strong local money to help industries that have to buy supplies from abroad (like oil for jet airplanes) and watch for a drubbing for raw materials exporters with thin margins, warns Citi.

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