Emerging countries currencies have been one of the worst asset classes in 2018. Let’s see the current situation about the most relevant ones: the Chinese Yuan, the Brazilian Real, the South African Rand, the Indian Rupee and the Russian Ruble.
Let’s take a closer look to the most recent news from the web:
Chinese Yuan: Trade War tensions are still weighting
China’s foreign-currency holdings fell in September, as heightened trade tensions with the U.S. fueled concerns of capital outflow and further yuan depreciation.
Reserves declined by $22.69 billion to $3.087 trillion in September, the People’s Bank of China said Sunday. That compares with $3.110 trillion the previous month and the median estimate of $3.105 trillion in a Bloomberg survey of economists.
(Read more on Bloomberg: China Foreign-Currency Reserves Drop on Trade Tensions, Yuan)
Brazilian Real: Presidential elections results trigger the rebound
Brazil’s currency jumped Monday following the first round of the presidential election over the weekend, where far-right candidate Jair Bolsonaro easily secured a spot in a runoff scheduled for later this month.
The real was up as much as 4% to 3.75 per US dollar in early trading, hours after final election results came in. Just missing the half-vote threshold needed to win altogether, Bolsonaro secured 46% while his closest rival Fernando Haddad, of the leftist Workers Party, had 29%. The two will vie for the presidency October 28. ( Read more on Yahoo Finance: The real is soaring after ‘Brazil’s Donald Trump’ wins first round of presidential election)
South African Rand: The political turmoil weights…
South Africa’s rand was weaker early on Monday, after the Business Day newspaper cited government sources as saying that Finance Minister Nhlanhla Nene had asked President Cyril Ramaphosa to sack him.
The rand was more than 1 percent weaker at 14.9200 per dollar at 07:36 GMT.
(Read more on CNBC: South Africa’s rand weaker on report finance minister has asked to be sacked )
Indian Rupee: The fall continues despite a recovering economy
The Indian rupee ended at an another record closing low of 73.58 per dollar after it touched an all-time low of 73.81 in the morning trade on the back of rising global oil prices, and concerns over current account deficit and capital outflows.
(Read more on Money Control: Indian rupee slips 24 paise to hit new record low of 73.58/USD )
Russian Ruble: Updating new lows…
The recent drop to RUB 70 per US dollar was too much for the Kremlin to stomach as it occurred too quickly and raised serious concerns about inflation. The CBR was forced to raise the key rate and suspend FX purchases to the end of the year. The CBR’s move, coupled with the decision by the US Treasury Department’s Office of Foreign Assets Control to extend the expiration date for the general operational licenses of Rusal and EN+ – the sanctioned companies owned by Russian oligarch Oleg Deripaska – and conciliatory comments from Trump about the Nord Stream-2 gas pipeline from Russia to Germany, has allowed the ruble to rally to the mid-60s per US dollar.
(Read more on New Europe: US sanctions take a toll on Russian ruble, sideline investors )