Emerging currencies slump to 15-year lows as China’s equity route and free-falling commodity prices reverberate throughout the global economy, The Punch reports.
“Raw-material exporters Brazil, Russia and Colombia have suffered some of the heaviest sell-offs as falls in the price of commodities such as oil, copper and iron ore continued unabated this week, with Brent crude falling to its lowest level since February,” the source notes.
The Punch explained that the turbulence is expected to increase once the US Federal Reserve chooses to finally lift interest rates from near-zero levels, a move which will probably have a chilling effect on developing markets.
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An expert of Morgan Stanley, James Lord, stated that the Fed was an ever-present risk adding that any change in expectations about the first US rate hike driven by strong US economic data could add to the existing volatility.
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Emerging Currencies Suffer 15-year Lows
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