The global market sell-off continues.
And the emerging market continues to take the worst of it.
For some context, Oppenheimer’s John Stoltzfus offers this chart of emerging market currency moves relative to the U.S. dollar from a year ago.
When it comes to currency, stability is key. But these horrific devaluations in such a short period of time is a nightmare for countries that have lots of overseas debts and imports to finance.
Unfortunately, as the Federal Reserve makes steps to normalize monetary policy, currency experts only expect things to get worse for these markets as the U.S. dollar is forecasted to get stronger.
“Emerging market currencies are facing headwinds from tepid global growth and the process of tapering QE by the Fed stateside,” said Stoltzus.
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