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20 Aug 2015
Heavy tone persists in EM FX – BBH
FXStreet (Edinburgh) - The research team at BBH keeps remarking the downside pressure surrounding the EM space.
Key Quotes
“Emerging markets currencies are under increasing pressure”.
“The last leg lower in oil prices hit hard the usual suspects: Russia, Mexico and Malaysia”.
“But most other currencies got taken along for the ride. Turkey is underperforming, with the usual idiosyncratic risk, with the dollar briefly trading above the 3.00 level for the first time”.
“The dollar rose above the 13.00 level against the South African rand for the first time since 2001”.
“The Hungarian forint is down nearly 1% against the euro, an unusually large move for the pair, though the move is probably being exacerbated by thing liquidity during a national holiday there”.
“Also of note, the Kazakstan tenge fell 23% overnight, with the country reportedly adopting a free floating currency regime”.
Key Quotes
“Emerging markets currencies are under increasing pressure”.
“The last leg lower in oil prices hit hard the usual suspects: Russia, Mexico and Malaysia”.
“But most other currencies got taken along for the ride. Turkey is underperforming, with the usual idiosyncratic risk, with the dollar briefly trading above the 3.00 level for the first time”.
“The dollar rose above the 13.00 level against the South African rand for the first time since 2001”.
“The Hungarian forint is down nearly 1% against the euro, an unusually large move for the pair, though the move is probably being exacerbated by thing liquidity during a national holiday there”.
“Also of note, the Kazakstan tenge fell 23% overnight, with the country reportedly adopting a free floating currency regime”.