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: Investing.com) |
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: Investing.com) |
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.
SoberLook.comFrom our sponsor:
