Inflation-adjusted interest rates are still too low indeveloping nations for Citigroup Inc. and Goldman Sachs Group Inc.to foresee an end to the worst emerging-market currency selloff in five years.

One-year borrowing costs in Turkey are 3.6 percent, less thanhalf of the average in the three years before the 2008 globalfinancial crisis, even after the central bank doubled its benchmarkrate last week, according to data compiled by Bloomberg. The realyield for Mexico is almost zero, while South Africa's is 1.4percent, compared with an average of 2 percent over the pastdecade.

Central-bank rate increases in Turkey, India, and South Africa last week failed to contain January's 3percent selloff in emerging-market currencies. Citigroup saysyields aren't high enough to attract the capital needed to financecurrent-account deficits in some of those nations. Competition forcapital is intensifying, with the Federal Reserve paring monetarystimulus, while the International Monetary Fund is calling for“urgent policy action.”