Emerging Markets currency rout underway

C

Caput Lupinum

Well-Known Member
Silver Stacker
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.
 
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
 
would be cool if there was a BRICS/emerging market currency index that was widely tracked
 
currency engineering in Brazil ahead of the Olympics, have a look at $A pre 2000 ;-)
 
aleks said:
would be cool if there was a BRICS/emerging market currency index that was widely tracked
Click to expand...


Could the BRICS bank ever rival or overtake the IMF and World Bank?
 
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
 
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.
 
You must log in or register to reply here.
Back
Top