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%).


OCBC Raises Gold Price Forecast to $5,600 as Structural Demand and Uncertainty Persist
Morgan Stanley Flags High Volatility Ahead for Tesla Stock on Robotaxi and AI Updates
BTC Flat at $89,300 Despite $1.02B ETF Exodus — Buy the Dip Toward $107K?
Morgan Stanley Raises KOSPI Target to 5,200 on Strong Earnings and Reform Momentum
BTC Dips on Trade Tension Ease, But 450 BTC/Day Whale Says “Buy More” – Eyes $107K Glory




