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The risk-on trade sends emerging markets currencies to new lows – Sober Look

This is a syndicated repost courtesy of Sober Look. To view original, click here. Reposted with permission.

Today’s China-induced “risk-off” trade sent emerging markets currencies into a sharp decline. As discussed before Turkey and South Africa have been hit the hardest recently and today touched fresh all-time lows.

ZAR = South African rand, TRY = Turkish lira
(chart shows dollar appreciating against these currencies; source:

But even some of the larger emerging markets nations saw their currencies decline to multi-year lows. Brazil and Russia in particular experienced a significant selloff.

BRL = Brazilian real, RUB = Russia ruble
(chart shows dollar appreciating against these currencies; source:

The “risk-on” currency correction was not limited to emerging markets, as the Australian dollar touched levels not seen since 2009 (at some point hitting US$ 0.874 – vs. 1.05 last spring). It seems that some of the volatility seen in global markets during the Eurozone crisis has returned.

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

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