These Five Currencies Are Most Exposed to Emerging-Market Rout
- Volatility bets surge on lira, real, peso, ruble and rand
- Currency markets most pessimistic since China devaluation
Photographer: Kerem Uzel/Bloomberg
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Derivative traders are hedging their bets on five emerging markets where they see the greatest probability of declines in the next month.
The currencies of Turkey, Brazil, Mexico, Russia and South Africa are seeing the world’s biggest increases in their implied volatility gauges this quarter, amid the worst period for developing-nation currencies since China’s shock devaluation in the third quarter of 2015.