Emerging Market Massacre Returns: Rand Routed But Yuan’s Collapsing

emerging market massacre returns rand routed but yuans collapsing

While the Turkish Lira continues to rebound squeeze higher, the rest of the emerging market complex has caught its cold with the Rand, Ruble, and all the ‘pesos’ getting pounded in early trading. However, it is the ongoing collapse of the Yuan that is most notable…

Turkey is fixed…

Emerging Market Massacre Returns: Rand Routed But Yuan's Collapsing

So why isn’t everyone celebrating? Because the looming dollar shortage isn’t stopped by a bounce in what everyone claimed was an idiosyncratic issue with Erdogan, as we explained here:

Emerging Market Massacre Returns: Rand Routed But Yuan's Collapsing

The South African Rand is getting routed (slumping back towards its flash-crash lows)…

Emerging Market Massacre Returns: Rand Routed But Yuan's Collapsing

The Russia Ruble is slumping…

Emerging Market Massacre Returns: Rand Routed But Yuan's Collapsing

India’s Rupee plunged to a new record low…

Emerging Market Massacre Returns: Rand Routed But Yuan's Collapsing

And Indonesia is getting close despite a surprise rate hike of 25bps (and a cumulative 150bp since May):

Emerging Market Massacre Returns: Rand Routed But Yuan's Collapsing

The Brazilian Real and all the pesos (Argentina, Mexico, Colombia) are sliding:

Emerging Market Massacre Returns: Rand Routed But Yuan's Collapsing

But while the numbers are bigger for all of the above, it’s the collapse of the yuan that has most people’s attention:

Emerging Market Massacre Returns: Rand Routed But Yuan's Collapsing

It’s all getting very real as Offshore Yuan nears its record low (down 11% from its march highs)

Emerging Market Massacre Returns: Rand Routed But Yuan's Collapsing

Which pushes the Renminbi near 10-year lows:

Emerging Market Massacre Returns: Rand Routed But Yuan's Collapsing

And it’s not just EM FX, Tencent’s demise has sparked the 3rd worst day of the year in EM equities:

Emerging Market Massacre Returns: Rand Routed But Yuan's Collapsing

Just one more wafer-thin USD-denominated debt issue?

Emerging Market Massacre Returns: Rand Routed But Yuan's Collapsing
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Author: HEDGE

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