Currencies in Latin America, Eastern Europe and Asia were already under pressure this year, and China’s meltdown is just the latest trigger for the selling.
“The trend in China-related news and in commodities is feeding into broader risk aversion, and this is making it very tough for emerging currencies,” said Jens Nordvig, managing director of currency research at Nomura.
Brazil’s real is the hardest hit of the year so far, down more than 20 percent against the U.S. dollar and sitting at its weakest value in 12 years. Turkey’s lira is down 16 percent.
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