Emerging Markets currency rout underway

Discussion in 'Currencies' started by Caput Lupinum, Sep 23, 2015.

  1. Caput Lupinum

    Caput Lupinum Well-Known Member Silver Stacker

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    Decent sell off of the emerging markets currencies overnight along with the general trend of EM currency weakness. Brazilian Real, Mexican Peso, Malaysian Ringgit, Chilean Peso and South African Rand among the worst. Mostly I believe on the back of poor Chinese manufacturing data putting pressure on commodities. Unless Chinese data magically improves in the near future, I can only see it getting worse.
     
    Caput Lupinum, Sep 23, 2015
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  2. SpacePete

    SpacePete Well-Known Member Silver Stacker

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    AUD dropped below 70c again too.
     
    SpacePete, Sep 23, 2015
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  3. Caput Lupinum

    Caput Lupinum Well-Known Member Silver Stacker

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    The Brazilian Real is pretty much in free fall at this point losing 3% to the USD overnight
     
    Caput Lupinum, Sep 23, 2015
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  4. Caput Lupinum

    Caput Lupinum Well-Known Member Silver Stacker

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    Emerging markets are always the first to feel the brunt of the global economic slowdown and this feels no different. Malaysian, Indonesian, Brazilian, Chilean, South African, Mexican and Turkish currencies are continuing to head south and gathering speed. Eastern Europe is fairing better as the Euro is holding its ground. There's no way the fed can hike rates based on these currencies freefalling
     
    Caput Lupinum, Sep 24, 2015
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  5. Caput Lupinum

    Caput Lupinum Well-Known Member Silver Stacker

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    Caput Lupinum, Sep 25, 2015
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  6. aleks

    aleks Well-Known Member Silver Stacker

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    would be cool if there was a BRICS/emerging market currency index that was widely tracked
     
    aleks, Sep 25, 2015
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  7. hiho

    hiho Active Member Silver Stacker

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    currency engineering in Brazil ahead of the Olympics, have a look at $A pre 2000 ;-)
     
    hiho, Sep 25, 2015
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  8. Skyrocket

    Skyrocket Well-Known Member Silver Stacker

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    Could the BRICS bank ever rival or overtake the IMF and World Bank?
     
    Skyrocket, Sep 25, 2015
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  9. aleks

    aleks Well-Known Member Silver Stacker

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    I meant a BRICs/emergening market currency index equivalent to the USDX or USDOLLAR.

    If the selling continues, interest rate hikes are a given and doom is on the cards for their respective stock markets a la 1997
     
    aleks, Sep 26, 2015
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  10. Caput Lupinum

    Caput Lupinum Well-Known Member Silver Stacker

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    Caput Lupinum, Sep 26, 2015
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  11. aleks

    aleks Well-Known Member Silver Stacker

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    No, that's a basket index of stock market indexes if I'm not mistaken

    The UDSX/DXY is weighted:

    Euro (EUR), 57.6% weight
    Japanese yen (JPY) 13.6% weight
    Pound sterling (GBP), 11.9% weight
    Canadian dollar (CAD), 9.1% weight
    Swedish krona (SEK), 4.2% weight
    Swiss franc (CHF) 3.6% weight

    Big movements in EM currencies aren't seen in this index, I know there is an ETF but still, its not the same and its not widely followed.
     
    aleks, Sep 28, 2015
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