This has certainly been true historically; for instance,
the volatility of emerging market currency returns soared during the East Asian financial crisis of 1997 and the devaluation of the ruble in 1998.
Not exact matches
The dollar's rally since Trump's surprise win in Tuesday's vote is causing turmoil in
emerging markets, prompting Malaysia's central bank to say it may act at times
of extreme
volatility, while India and Indonesia were said to have supported their
currencies on Friday.
by Silvio Cascione, Sumanta Dey and Vuyani Ndaba (Reuters)- The U.S. dollar is likely to set new records against
emerging market currencies this year, although its climb may be slower than in 2015 and possibly hampered by more frequent bouts
of volatility, a Reuters poll suggested.
At specific points during the post-vote
volatility, we found what we estimated to be a bit
of a bottom in specific
emerging markets: a number
of emerging market currencies had initially fallen 5 % to 7 % but began to regain some lost ground as things began to normalize later during the June 24 trading period.
But there are other options as well, investors today have options
of actively managed funds,
currency - hedged funds, low
volatility funds, dividend funds and even factor based
emerging market funds.
Currency Volatility The next question for most investors is: What about the increased volatility associated with local currency exposure, particularly in the case of fragile emerging market cur
Currency Volatility The next question for most investors is: What about the increased volatility associated with local currency exposure, particularly in the case of fragile emerging market c
Volatility The next question for most investors is: What about the increased
volatility associated with local currency exposure, particularly in the case of fragile emerging market c
volatility associated with local
currency exposure, particularly in the case of fragile emerging market cur
currency exposure, particularly in the case
of fragile
emerging market currencies?
But, at least for the past five years, a basket
of emerging market currencies has contributed no more
volatility to an international portfolio than a basket
of developed
currencies.
Some
of those risks include general economic risk, geopolitical risk, commodity - price
volatility, counterparty and settlement risk,
currency risk, derivatives risk,
emerging markets risk, foreign securities risk, high - yield bond exposure, noninvestment - grade bond exposure commonly known as «junk bonds,» index investing risk, industry concentration risk, leveraging risk,
market risk, prepayment risk, liquidity risk, real estate investment risk, sector risk, short sales risk, temporary defensive positions, and large cash positions.