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Devaluation massacre series: Emerging FX

For some of the emerging market currencies, recent rout has been worst since financial crisis (2008/09), for some worst since Asian currency crisis (1997), for some worst since Taper Tantrum (2013) and for some, worst on record.

China's recent devaluation of Yuan just increased the pain of emerging market FX, which lost further grounds and fast since China's devaluation. Debasing Yuan just pulled an anchor for emerging market currencies, especially Asian ones.

Market participants are worried that China might be weaker than many had originally assumed, which is overall bad news for emerging markets. China consumes lot of exports of emerging market and with further slowdown in mainland, risks emerging markets.

Moreover, speculation has been going up for further devaluation from China, either controlled or uncontrolled.

The chart represents some of the prominent emerging market's currencies since first devaluation of Yuan on August 11th. Drop would be larger if today's move is considered, data till Friday.

  • Rouble is leading the way with-10.76% drop (oil price drop has contributed to the fall), followed by Malaysian Ringgit (-6.10%), Turkish Lira (-5.10%), Taiwan Dollar (-3.25%), Vietnamese Dong (-3.10%), Indian Rupee (-3.08%), Indonesian Rupiah (-2.90%), Korean Won (-2.72%), South African Rand (-2.53%), Singapore Dollar (-1.95%) and Brazilian Real (-1.9%).
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November 15 11:30 UTC Released

TREndYear CPI Fcst/Cb Svy

Actual

24.45 %

Forecast

Previous

24.22 %

November 15 11:00 UTC Released

EZReserve Assets Total

Actual

696.85 EUR

Forecast

Previous

673.92 EUR

January 31 00:00 UTC 415462415462m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 415462415462m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 427282427282m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 415462415462m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 427282427282m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 415462415462m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 415462415462m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 415462415462m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

Close

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